Two More Records Broken - Lowest Inventory On Record and More homes sold than any other November.
It just wouldn’t be 2020 without the Denver real estate market breaking more records. At the end of November, we only had 3,597 homes for sale – the lowest number since recording started over a decade ago. November also saw more closing in the Denver area than any other November. Prices dropped for the first time year, but only slightly. The market has started to slow in volume but the pace is still extremely fast.
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). MOM represents the percentage of change from last month while YOY represents the change from this time last year.
Homes Closed -19% mom, +22% yoy
In November, more homes sold than any other November on record. Throughout the month, 5,236 homes closed, a year-over year increase of 22% and a 19% decrease month over month.
The count of listings in Pending status was 4,811, which is 16% more than November 2019 and 18% less than last month, indicating the market has remained strong through the fall months.
Sold Prices -2% mom, +13% yoy
The Average Closed Price of a home in the Denver metro area in November was $547,094, a year-over-year increase of 13% and 2% less than last month.
The Average Closed Price for Single Family homes was $612,984, a 15% year-over-year increase and a 2%
month-over-month decrease.
MultiFamily/ Condo/Townhomes closed for an average price of $387,789, a 7% year-over-year increase and a 1% month-over-month decrease.
New Listings -40% mom, +1% yoy
Throughout November, 3,695 New Listings of homes for sale hit the market, which is 1% higher than November of 2019. Compared to last month, the count of New Listings saw a seasonal decrease of 40%.
At the end of November, there were only 3,597 Active properties on the market, 47% fewer than last year at this time and 19% fewer than last month.
Currently, there are 3 weeks of inventory, 4 weeks fewer than this time last year and unchanged from last month.
Days in MLS -2 Days mom, -13% yoy
Denver metro homes spent an average of 22 Days in the MLS in November, 13 days fewer than this time last year and 2 days fewer than last month.
On average, Single-Family Residences were on the market 20 days, while Multi-Family/Condo/
townhome properties were on the market 26 days.
The median number of days a home spent in the MLS in November was 6, down 14 days from last year.
Metro Denver Real Estate Market Snapshot - November 2020
Year To Date
At the end of November, most of the year-to-date indicators continue to show positive year-over-year gains. The number of Closed Listings year to date is 7% higher than this time last year and the highest count we have on record. While New Listings remain tight, the year-to-date gap remains at 2% fewer than this time in 2019. The average Closed Price is up 8% from last year due in part to high buyer demand, limited inventory, and low interest rates. Homes spent an average of 26 days in the MLS, 5 days fewer than the previous year.
Interest Rates
According to Bankrate.com’s Rate Trade Index, “Half of the experts on Bankrate’s expert expect mortgage rates to remain flat in the week ahead (Dec. 3-9). Some 33 percent said rates will rise and 17 percent said rates will fall.”
Today’s Most Prevalent National Rates as reported by Bankrate.com.
- 30 YEAR FIXED – 2.92%, down slightly from 2.97% last month.
- VA – down to 2.84% compared to 3.05% last month.
- FHA – up to 2.81% from 3.23% last month.
- 15 YEAR FIXED – down to 2.39% compared to 2.48% last month.
- 5 YEAR ARMS – down to 3.01% from 3.04% last month.
Denver real estate Forecast
What’s Next For The Denver Real Estate Market? – My Denver Real Estate Market Forecast:
The Denver real estate market will continue to favor sellers because of the low inventory and high demand. While the number of sales has decreased due to the seasonal cycle, the number of homes available is nearly 50% less than this time last year and the number of home buyers is higher. Prices finally fell for the first time in 2020, although only slightly – by less than 2% over last month. My prediction that this year could be the first time in decades that prices will not drop during our winter months didn’t pan out, but I expect prices to rise again slightly in December. Low inventory will continue to make it difficult for lower priced buyers; however, if you are considering buying, December and January will provide a better opportunity than if you wait until February when prices and perhaps interest rates will start to rise again.
