The Denver Real Estate Market Continues To Break Records
When COVID-19 first reared it’s ugly head, the naysayers predicted doom and gloom for the real estate market. The Denver market was initially slowed, but buyers and sellers who hesitated in spring came back in droves during the summer months. With record number of homes going under contract in May and June coupled with the lowest mortgage interest rates in history, it is no surprise that this month, we broke records for the number of homes closed and median sales price. If you are considering selling and wondering if you missed the window of opportunity to sell your home for top dollar, see my recent post, Is Now The Best Time Ever To Sell Your Home In Denver.
The Denver MLS / REColorado Market Watch Statistics
The following statistics come from REcolorado and show data for the Greater Denver Metro Area (Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties).
Homes Closed +21%
In July, a record number of homes sold
in the Denver Metro area. Throughout
the month, 7,186 homes closed, a
year-over-year increase of 21% and a
16% increase month over month.
In July, the count of listings in Pending
status was 7,099, which is 27% more
than July 2019 and down 4% from last
month.
Prices +9%
The average price of a home in the Denver metro area in July was $539,340, a year-over-year increase of 9%. As compared to last month, prices were 6% higher.
Single-family residences sold for an average price of $599,463, a 10% year-over-year increase. The average price of multi-family/condos/townhomes was $383,764, up 6% year over year.
New Listings +15%
Throughout the July, 7,638 new homes hit the market, a 15% increase compared to last year, and a 3% increase from last month. This is
the highest single-month count of New Listings we’ve seen in 2020.
At the end of July, there were 5,952 Active properties on the market, a 37% year-over-year decrease, and a 7% month-over-month decrease.
Currently, there are 4 weeks of inventory, 3 weeks less than this time last year and 1 week less than last month.
Days in MLS -1 Day
Denver Metro homes spent an average of 25 days on the market in July, one day less than this time last year and the same amount of time as last month.
On average, single-family residences were on the market 24 days, while multi-family/condos/townhomes were on the market 26 days.
The median number of days a home spent on the market in July was 7, down 4 days from last year.
Metro Denver Real Estate Market Snapshot - July 2020
Year To Date
Year-to-date measures indicate we’re having a strong buying and selling season despite the pandemic. Compared to last year, the count of New Listings is down just 6% and the number of Closed Listings is down 4%. As the busy season progresses, we’re seeing the year-over-year delta for these measures decrease. The average Closed Price is up 4% from last year due primarily to high buyer demand and low inventory levels. Homes spent the same amount of time on the market this year as they did the previous year.
Interest Rates
According to Bankrate.com’s Rate Trade Index, “In the week ahead (Aug. 6-12), 64 percent of the experts on Bankrate’s panel predict rates will fall, while 21 percent think they’ll rise and 14 percent expect rates to hold steady.”
Today’s Most Prevalent National Rates as reported by Bankrate.com.
- 30 YEAR FIXED – down to 3.06% compared to 3.17% last month.
- VA – down to 2.82% compared to 3.07% last month.
- FHA – down to 2.82% from 3.05% last month.
- 15 YEAR FIXED – down to 2.63% compared to 2.74% last month.
- 5 YEAR ARMS – up to 3.28% from 3.22% last month.
Denver real estate Forecast
What’s Next For The Denver Real Estate Market? – My Denver Real Estate Market Forecast:
With more pending sales in July than active listing, I expect August to again show near record numbers for sold homes and median sales prices. The market should start to slow in August or September and I expect prices will show a slight gain next month but start to drop slightly by September. Low inventory will continue to make it difficult for lower priced buyers. If you have been considering putting your house on the market – I suggest doing it sooner than later.
