The Denver Real Estate Market Continues To Break Records
Buyers are not slowing down while new listings are. Nearly 2,000 more homes went under contract in August than the number of new listings which came on the market. This is the time of year we would typically be seeing prices in the 2nd or 3rd month of decline, however median sales prices rose slightly to a new record high in August. The market will eventually slow down, the question is when.
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 +12%
A record number of homes sold in the month of August as compared to this month in previous years. Throughout the month, 6,381 homes closed, a year-over year increase of 12% and a 13% decrease month over month.
Homes remained in high demand in August. The count of listings in Pending status was 7,405, which is 34% more than August 2019 and 9% higher than last month.
The average price of a home in the Denver metro area in August was $539,252, a year-over-year increase of 11%. As compared to last month, prices saw a marginal increase.
Home price increases were driven by Single-family residences, which sold for an average price of $602,191, a 13% year-over-year increase. This is the first time prices for single-family homes have surpassed $600,000. The average price of multi-family/condos/townhomes was $377,451, up 2% year over year.
New Listings +2%
Throughout August, 6,876 new homes hit the market, 2% more than this month last year. After 3 months of increases in New Listings, we saw our first decrease as 10% fewer homes for sale hit the market.
At the end of August, there were only 5,778 Active properties on the market, 39% fewer than last year at this time and a 3% lower than last month.
Currently, there are 4 weeks of inventory, 3 weeks fewer than this time last year and unchanged from last month.
Days in MLS -8 Days
Denver Metro homes spent an average of 23 days on the market in August, 8 days fewer than this time last year and 2 days fewer than last month.
On average, single-family residences were on the market 23 days, while multi-family/condos/townhomes were on the market 24 days.
The median number of days a home spent on the market in August was 7, down 8 days from last year.
Metro Denver Real Estate Market Snapshot - August 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 5% lower, and the number of Closed Listings is just 1% lower. As the busy season progresses, we’re seeing the year-over-year delta for these measures decrease. The average Closed Price is up 5% from last year due primarily to high buyer demand and low inventory levels. Homes spent an average of 28 days in the MLS, 1 day less than the previous year.
According to Bankrate.com’s Rate Trade Index, “In the week ahead (Sept. 10-16), 36 percent of the experts on Bankrate’s panel predict rates will rise, while 27 percent expect rates to hold steady and 36 percent think rates will fall.”
Today’s Most Prevalent National Rates as reported by Bankrate.com.
- 30 YEAR FIXED – 3.06%, unchanged from last month.
- VA – up to 2.9% compared to 2.82% last month.
- FHA – up to 2.88% from 2.82% last month.
- 15 YEAR FIXED – down to 2.56% compared to 2.63% last month.
- 5 YEAR ARMS – up to 3.33% from 3.28% 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 August than active listing, I expect September to again show near record numbers for sold homes and median sales prices. The market should start to slow in September or October and I expect prices will show a slight gain next month but start to drop slightly by October. 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.