Housing Demand and Prices Up in June
Denver’s housing market in June 2020 is showing several signs of resiliency to both the pandemic and various economic uncertainties currently rocking the U.S. and the world. According to DMAR, more homes went under contract than new homes hitting the market. 7,364 new properties hit the market in June and an astounding and record setting 7,676 properties went under contract.
In April and May, we saw a concerning dip in the typical number of homes sold, but in June these numbers bounced back to 2019 stats. Prices also took a slight decrease from 2019 numbers in April and May, but June saw them pop up even higher than 2019 numbers.
Interest rates just hit another record low which is great for buyers but “after two months of rampant growth, the American economy is still down nearly 14.7 million jobs since February,” (CNN Business). Time will tell if June will set a trend in the rebound of the housing market’s certainty, or if we are in for more change.
First 6 months of 2019
| Days on Market | Avg. Sold Price: Single Family Home | Avg. Sold Price: Condo | # of Homes Sold | # of Homes Pending | Avg. Sold Price Change YOY | |
| Jan. 2019 | 39 | $508,016 | $350,176 | 2,915 | 4,008 | + 2.89 % |
| Feb. 2019 | 39 | $512,312 | $349,801 | 3,468 | 4,443 | + 0.66 % |
| Mar. 2019 | 31 | $530,897 | $360,875 | 4,488 | 5,448 | + 1.79 % |
| Apr. 2019 | 28 | $553,371 | $368,565 | 5,205 | 6,470 | +1.5 % |
| May 2019 | 24 | $555,482 | $380,363 | 6,164 | 6,470 | +3.36 % |
| June 2019 | 23 | $547,461 | $370,442 | 5,772 | 6,101 | +1.57 % |
First 6 months of 2020
| Days on Market | Avg. Sold Price: Single Family Home | Avg. Sold Price: Condo | # of Homes Sold | # of Homes Pending | Avg. Sold Price Change YOY | |
| Jan. 2020 | 45 | $532,494 | $355,754 | 3,324 | 4,923 | + 3.98 % |
| Feb. 2020 | 39 | $544,054 | $368,936 | 3,835 | 5,083 | + 5.04 % |
| Mar. 2020 | 29 | $567,382 | $386,344 | 4,296 | 4,992 | + 7.31% |
| Apr. 2020 | 20 | $550, 177 | $379,495 | 3,603 | 3,280 | + 1.52 % |
| May 2020 | 23 | $543,072 | $368,241 | 3,548 | 6,809 | – 1.31 % |
| June 2020 | 24 | $560,435 | $371,172 | 5,581 | 7,676 | + 2.06 % |
Source: DMAR
Housing Market | Sold Prices in Metro Denver:
Stats below include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties
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Headlines: What’s Happening in Denver
Colorado among top 10 states with highest rent collection rates in June
“More than 95% of Colorado renters paid this month’s rent by June 23, according to RealPage, a data analytics firm for the real estate industry. Colorado’s rent collection rate of 95.4% was the ninth-highest among the 47 states that reported sufficient data, RealPage found.”
Pending sales ‘skyrocket’ in May as Denver’s housing market heats up
“New listings and pending sales of homes in the 11-county Denver metro jumped significantly in May, an encouraging sign for the residential market after transaction activity sputtered under nearly two months of stay-at-home orders that restricted in-person showings.”
DMAR Real Estate Market Trends Report
“In March, pre-COVID-19, the average price for a residential property in the 11-county metro Denver area zoomed above $500,000 for the first time, to $513,535. That price then dipped back down below the half-million-dollar mark during the home-showing shutdown and uncertain economic times in April and May. In June, however, average prices bounced back up to $509,736, the second-highest average price for residential real estate in Denver.”
— DMAR
Headlines: What’s Happening Nationally
Pending home sales notch record-setting 44.3% monthly increase in May
“Pending home sales mounted a record comeback in May, seeing encouraging contract activity after two previous months of declines brought on by the coronavirus pandemic, according to the National Association of Realtors®. Every major region recorded an increase in month-over-month pending home sales transactions, while the South also experienced a year-over-year increase in pending transactions.”
— National Association of Realtors
U.S. homebuilding rises moderately; jump in permits hints at green shoots
“U.S. homebuilding increased less than expected in May, but a strong rebound in permits for future home construction suggested the housing market was starting to emerge from the COVID-19 crisis along with the broader economy.”
— Reuters
U.S. job growth roars back, but COVID-19 resurgence threatens recovery
“The U.S. economy created jobs at a record clip in June as more restaurants and bars reopened, but 31.5 million Americans were collecting unemployment checks in the middle of the month, and a resurgence in COVID-19 cases suggested the labor market could suffer a setback in July.”
— Reuters
Home foreclosures and evictions banned through summer
“The Federal Housing Finance Agency (FHFA) this week announced that it would extend its ban on foreclosures and evictions until at least Aug. 31. This is the second time the FHFA has lengthened its moratorium, which it adopted in the wake of the COVID-19 pandemic. The move has the potential to impact millions of homeowners.”
— Forbes
Report for June 2020:
Read Denver Metro Association of Realtor’s full report on last month’s Real Estate trends and statistics in Denver here.
And as always, please let us know if you have any questions!
