Denver Housing Market Update
After we saw almost all major records get broken in 2020, January 2021 has officially become a record-setting month as well. And just when we thought inventory couldn’t get any lower, it dropped to 2,316 at the end of January, compared to 2,541 at the end of December. This is over 53 percent fewer homes for sale than this time last year.
Another indication that we are in for an incredibly active real estate season is that the number of pending homes (homes that had an offer accepted) jumped to 4,449 in January compared to December’s 3,028. Additionally, over 4,214 new homes hit the market in January compared to December’s 3,028.
The average close price of all homes (attached and detached) in January 2021 was $550,425 up 15.71 percent from January 2020. The average close price of single-family detached homes alone jumped an even higher 18.96 percent to a record-setting $629,159 (DMAR).
The average close price of detached single-family homes in January 2021 was a record-setting $629,159, up a stunning 18.96 percent from January 2020.
While the average price of condos also hit a new record, these attached homes have significantly more inventory than their detached cousins, and could be worth considering if you are about to start your home search. For an 80202 home purchase or beyond, let Usaj Realty expertly assist you throughout your next home purchase.
A Quick Glance at the Numbers:
| Days on Market |
Avg. Sold Price: Single Family Home |
Avg. Sold Price: Condo | # of Homes Active | # of Homes Sold | # of Homes Pending |
Avg. Sold Price Change YOY |
|
| Jan. 2018 | 52 |
$490,932 |
$354,613 | 3,869 | 2,736 | 4,085 |
+ 11.84 % |
| Jan. 2019 | 42 |
$500,683 |
$358,294 | 5,881 | 2,644 | 4,161 |
+ 2.89 % |
| Jan. 2020 | 45 |
$532,494 |
$355,754 | 4,941 | 2,991 | 4,923 |
+ 3.98 % |
| Jan. 2021 | 27 |
$629,159 |
$397,792 | 2,316 | 3,015 | 4,459 |
+ 15.71 % |
Source: DMAR
During these unprecedented times, Usaj Realty would love to carefully assist you with finding your next place to call home, or selling your current property. Our acumen, attention to the market and negotiation skills will all go to work in order to advocate for your goals. Email us at info@usajrealty.com or call 720.398.2999. We measure our success by the happiness of our clients!
Housing Market | Sold Prices and Active Listings in Metro Denver:
Stats below include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties
{{cta(‘ccccf9f5-79a6-4659-95ec-27051dfac745’)}}
Headlines: What’s Happening in Colorado
Unpredictable Factors Deliver Record Setting 2020 Housing Market Across Colorado
“While coronavirus delivered devastating effects on our personal and professionals lives throughout 2020, the oldest laws of supply and demand carried Colorado’s housing market through health-focused restrictions, as well as changing residential and work wants and needs. Coupled with historically low interest rates, the combination of circumstances delivered record-setting results in most measurable industry categories, according to the December 2020 housing data.”
– Colorado Association of Realtors
The Most Popular Cities For Millennial Homebuyers According To LendingTree (Denver is #3)
“Denver, which came in at number three [behind San Jose at #1 and Boston #2] on the most popular metros rankings, is a far more affordable market for Millennials. LendingTree’s borrower stats confirm this. The average loan requested from Millennial Denver homebuyers was $354,433. Denver metro’s average home value is $474,618.”
– Forbes
Pent-up Consumer Spending Will Drive Recovery, Economist Tells Denver Business Leaders
“Increased household savings levels, lack of a negative income shock that accompanies most recessions and pent-up consumer spending will all drive a post-pandemic recovery, an economist told a group of Denver business leaders.”
Denver a Top 10 Market for Development Opportunity
“With an increase in construction expected later this year, Denver has been identified by CBRE as one of the top 10 markets for development opportunities. The Top 10 overall markets in CBRE’s inaugural Development Opportunity Index are: 1) Atlanta with a score of 83.81; 2) Dallas, 83.04; 3) Phoenix, 82.94; 4) Orlando, Fla., 82.06; 5) Seattle, 81.11; 6) Denver, 81.08; 7) Raleigh, N.C., 80.88; 8) Houston, 80.74; 9) Austin, Texas, 80.61; and 10) Charlotte, N.C., 79.49.
The report analyzes existing real estate supply, current construction costs and past performance to identify markets and property types that offer the best opportunities.”
Headlines: What’s Happening Nationally
Why the Big Short in Housing Supply Will Remain in 2021
“As the housing market has recovered from the initial impacts of the pandemic, nominal house price appreciation has soared, but affordability actually improved until recently due to the house-buying power benefit from historically low mortgage rates. However, for the second month in a row, the Real House Price Index (RHPI) increased, indicating declining affordability. The reason? Rapid nominal house price appreciation has finally outpaced the house-buying power benefit from historically low mortgage rates.”
Experts Optimistic About Housing Market in 2021
“There is a high demand for housing and a great number of would-be buyers, and therefore sales should rise with more new listings,” Yun said. “This elevated demand without a significant boost in supply has caused home prices to increase and we can expect further upward pressure on prices for the foreseeable future.”
National Home Sales Persevere, Show Strength Despite COVID in 2020
“Sales were at their highest annual level since 2006 – just before the housing-market crash, which experts say is unlikely to be replicated today – and were buoyed by a strong end of the year, as December sales were up more than 22 percent from the same period a year before.”
Report for January 2021:
And as always, please let us know if you have any questions!
Whether buying or selling, Usaj Realty is dedicated to helping you stay competitive. Your Usaj Realty broker will communicate effectively, learn your goals like the back of their hand, and work closely with you to negotiate the best terms possible, and expertly manage your transaction from start to finish, ensuring peace of mind.
Email us at info@usajrealty.com or call 720.398.2999.
{{cta(’60aae0c1-1119-4984-aef8-1e9a6ff2c534′)}}
