If you’ve been living in Denver for more than a few years, you can visibly see the change in traffic and new construction appearing all around the city. More and more people are moving to
Housing Market Trends Today
Dated: October 28 2020
As with everything in 2020, this has been an interesting year in the real estate market. We spoke this summer about the hot market, low-interest rates, and buyers on the hunt for a new home. With the warmer months serving as the traditionally hot selling season, we’ve all been watching the late summer and fall numbers with interest and anticipation.
Understanding market trends and statistics can be difficult, which is why it’s essential to work with a trusted realtor. In this piece, we’ll break down the numbers in the current market, then talk a bit about what that means as buyers and sellers right now.
September data shows that the Colorado market remains hot. “The continued strong demand and dwindling supply have pushed the inventory of active listings down more than 54% (9,804 homes) statewide compared to a year ago,” according to the latest monthly housing data from the Colorado Association of REALTORS® (CAR).
In the seven-county Denver metro area, active listings for single-family homes are down nearly 60% (4,656 homes) from September 2019. The state number and Denver-metro number reflect new record lows since CAR began tracking the figure a decade ago.
Despite the strongest September in the past five years for new listings (12,630), another very active month for pending/under contract properties, along with a September record for sold listings (13,039), kept the median sales price relatively flat but still up more than 12% statewide to $450,000 from a year prior. In the Denver metro area, the median sales price is up more than 13% from a year prior and now sits at a record-high of $493,500. The combination of factors drove the month’s supply of inventory for single-family homes to record lows.
These statistics provide insight into a variety of factors likely affecting the market right now:
- The typical real estate “high volume” season has expanded this year. Traditionally, Spring signals the beginning of the real estate season, with simmer remaining active, and fall signaling a cooling season. Homes are bought and sold throughout the year, but these seasonal trends have been consistent. . . until this year. The data shows that fall has not cooled off, and homes continue to sell at record-breaking prices during this traditionally slower season.
- Low inventory continues to be the headline across many American cities, and certainly in Colorado. There are simply more buyers than there are properties in Colorado. From condos/townhouses to single-family homes, the number of houses on the market does not meet demand. This is an attractive factor for sellers as it could help establish a better price and reduce worries about their house being on the market for a long time. Buyers still have plenty of opportunities to find their dream home, but know that there will be competition for homes and be prepared to work with us to navigate these negotiations.
- Market confidence remains high. The fact that buyers continue to break sales price records, even during economic uncertainty amidst the pandemic, shows that home buyers in Colorado are financially confident and ready to buy. One of the upsides of being a homeowner is the added financial security of having an asset that appreciates over time. Buyers are prepared to invest.
- Interest rates remain exceptionally low, which is a serious enticement to buyers. With 30-year mortgages hovering around 2.5%, conditions are creating an attractive financial opportunity for buyers. Even as home prices soar, low-interest rates help off-set higher prices.
- Quicker sales. With homes in the Denver-metro area averaging 21 days on the market, the sales process is speeding up, which is attractive to those who remember the days of drawn-out sales processes that could last months at times. For sellers, this is enticing to realize the profits from your home sale quicker, while buyers can enjoy an expedited purchase experience.
If you have decided now is the time to buy/sell or are interested in the option, let’s talk. We can break down the data in your current area or where you intend to buy to determine the most accurate real estate scenario for you. Contact us today at 303-459-2162, or via email at firstname.lastname@example.org.
At The Couture Group we are a team of experienced and dedicated professionals who bring a wealth of knowledge and expertise to buying and selling real estate! Holly Couture founded The Couture Grou....