Denver Housing Market Update
Typically, the Denver metro housing market starts to slow its roll this time of year as the weather cools and buyer activity dies down, but it’s 2020, and nothing is predictable or usual. Yet again, prices are at record-breaking highs and inventory is at record-breaking lows. Available homes for sale are down a stunning 43.66 percent year over year. And prices have shot up. According to DMAR, “There was a record-high for average sales price for single-family detached properties at $625,100 and record-low of months of inventory at 0.81.”
The average close price of all homes (attached and detached) leaped to $561,999, up an astounding 16.2 percent from October 2019. The average close price of single-family detached homes alone jumped an even higher 18.04 percent to a record-shattering $625,100.
The average close price of all homes (attached and detached) leaped to $561,999, up an astounding 16.2 percent from October 2019.
What is causing prices to skyrocket? The lack of available homes for sale. We only had 4,821 homes available for sale in October which shatters the record low by almost 2,000 listings. For comparison, in October of 2018 and 2019, we had right around 8,500 homes for sale.
Comparing 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 | |
| Oct. 2018 | 29 | $526,092 | $341,418 | 8,539 | 4,181 | 4,628 | + 7.12 % |
| Oct. 2019 | 33 | $535,483 | $365,665 | 8,557 | 4,654 | 5,179 | +3.54 % |
| Oct. 2020 | 24 | $625,100 | $393,733 | 4,821 | 5,984 | 6,141 | +16.2 % |
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.
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
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Headlines: What’s Happening in Denver
It’s never been harder to buy a home in Denver
“With little inventory and homes selling faster than normal, September was tough time to buy a home in the Denver Metro, according to the Denver Metro Association of Realtors (DMAR) Market Trends Report. By the end of September, there were 5,301 active listings—2,215 fewer than any other September on record. However, that didn’t stop buyers. A record 5,850 single-family homes and condos sold last month, and 6,376 homes were pending sale.”
– 5280
Buyers, move quickly: Denver homes now selling more than twice as fast compared to 2019, report says
“Homes in the Denver metro are now selling more than twice as fast compared to the same period in 2019, according to a recent report from Zillow. In September, the typical home in the Denver area went under contract after six days, a 63% year-over-year decrease in days on market. Denver’s housing market has been riding an unprecedented hot streak since the early summer, following a short-lived slowdown in March and April.”
Homes are still flying off the shelf in metro Denver and pretty much everywhere else
“Nationally, homes spent an average of 16 days on the market, a significant improvement from last year. And as fast as homes are moving in metro Denver, it isn’t the speediest market. The ones that are may come as a surprise.
Homes in Kansas City, Mo.; Columbus, Ohio, and Cincinnati all took only four days on average to go under contract. Entry-level listings in Cincinnati were claimed within two days, the time that Amazon Prime strives to deliver packages in.”
Headlines: What’s Happening Nationally
Existing-home sales soar 9.4% to 6.5 nillion in September
“Existing-home sales grew for the fourth consecutive month in September to a seasonally-adjusted annual rate of 6.54 million – up 9.4% from the prior month and nearly 21% from one year ago. The median existing-home price was $311,800, almost 15% more than in September 2019. Total housing inventory declined from the prior month and one year ago to 1.47 million, enough to last 2.7 months – a record low – at the current sales pace.”
– NAR
Is 2021 a good time to buy a house?
Though there’s no crystal ball, a clearer picture is starting to emerge of what next year’s housing market may look like. Here’s what you need to know:
- Interest rates should remain low.
- Home prices will probably keep rising.
- You may have more homes to choose from.
- Don’t forget: Housing is local.
How 2020 broke the housing market: So many homes are selling that we could run out of new houses in months
“The hottest pandemic purchase is a house, as more and more Americans take advantage of low mortgage rates to attain spacious backyards and more comfortable work-from-home locales. But not enough new houses are being built to keep up with demand, a trend that actually goes back a decade. Total inventory hit a record low of just 2.7 months’ supply in September.”
Report for October 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!
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.
