PRICES RISE, INVENTORY dECLINES, RECORD NUMBER OF HOMES CLOSE FOR OCTOBER.
What a wacky year for the metro Denver real estate market! Pending sales in October posted a 27% increase over last year. While new listings were up 12% over this time last year, more homes sold than new homes coming on the market which decreases our inventory to only 3 weeks. The market is starting to slow in volume but the pace is still extremely hot.
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 -1% mom, +24% yoy
In October, more homes sold than any other October on record. Throughout the month, 6,368 homes closed, a year-over-year increase of 24% and a 1% decrease month over month.
The count of listings in Pending status was 6,158, which is 27% more than October 2019 and 2% more than last month, indicating the market has remained strong through the early fall months.
Homes Closed Year-Over-Year Change
October 2019 — 5,144
October 2020 — 6,368
Prices +4% mom, +16% yoy
The Average Closed Price of a home in the Denver metro area in October was $561,197, a year-over-year increase of 16% and 4% higher than last month.
The Average Closed Price for single-family homes was $614,090, a 17% year-over-year increase and a 3% month-over-month increase. Multi-Family/ Condo/Townhomes Closed for an Average Price of $413,192, a 6% year-over-year increase and a 2% month-over-month increase.
Average Closed Prices Year-Over-Year Change
October 2019 — $483,658
October 2020 — $561,197
New Listings -7% mom, +12% yoy
Throughout October, 6,098 New Listings of homes for sale hit the market, which is 12% higher than October of 2019. Compared to last month, the count of New Listings saw a seasonal decrease of 7%.
At the end of October, there were only 4,442 Active properties on the market, 46% fewer than last year at this time and 14% fewer than last month.
Currently, there are 3 weeks of inventory, 4 weeks fewer than this time last year and 1 week less than last month.
New Listings Year-Over-Year Change
October 2019 — 5,432
October 2020 — 6,098
Days in MLS +1 Day mom, -10% yoy
Denver metro homes spent an average of 24 Days in the MLS in October, 10 days fewer than this time last year and 1 day more than last month. On average, single-family residences were on the market 23 days, while multi-family/condos/townhomes were on the market 26 days.
The median number of days a home spent in the MLS in October was 6, down 11 days from last year.
Days on Market Year-Over-Year Change
October 2019 — 34
October 2020 — 24
Metro Denver Real Estate Market Snapshot - October 2020
Year To Date
Year-to-date measures indicate our strong buying and selling season has continued into October. The number of Closed Listings year to date is 5% higher than this time last year and the highest count we have on record. While New Listings remain tight, the year-to-date gap has shrunk to 2% fewer than this time in 2019. The average Closed Price is up 7% from last year due in part to high buyer demand, limited inventory, and low interest rates. Homes spent an average of 27 days in the MLS, 3 days less than the previous year.
According to Bankrate.com’s Rate Trade Index, “In the week ahead (Nov. 12-18), 92 percent of the experts on Bankrate’s panel predict rates will rise, while 8 percent expect rates to fall and none think rates will remain the same.”
Today’s Most Prevalent National Rates as reported by Bankrate.com.
- 30 YEAR FIXED – 2.97%, down slightly from 3.04% last month.
- VA – up to 3.05% compared to 2.94% last month.
- FHA – down slightly to 3.23% from 3.24% last month.
- 15 YEAR FIXED – down to 2.48% compared to 2.57% last month.
- 5 YEAR ARMS – down to 3.04% from 3.08% 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 is decreasing 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 jumped up 4% over last month which is unheard of in October. I predict that this year could be the first time in decades that prices will not drop during our winter months but will probably only rise slightly or stay level through January. Low inventory will continue to make it difficult for lower priced buyers; however, if you are considering buying, November and December will provide a better opportunity than if you wait until February when prices and perhaps interest rates will start to rise again.