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How the Housing Markets Look Right Now
It has been an interesting year economically for our country and the global community. As COVID-19 caused states to enact “safer at home” orders in response to increasing fears regarding the worldwide pandemic; the economy has experienced some turbulence while navigating several unknowns and never-before-experienced situations. With businesses and individuals feeling some adverse financial effects, it is natural to wonder how the real estate market is looking right now.
Fortunately, the current situation has not translated into a housing crisis, particularly in Colorado. Our state was experiencing low housing inventory before the current situation occurred, and trends do not indicate that will change anytime soon, thanks to consistently strong buyer activity.
Colorado’s housing markets resulted in new record highs for pending sales and the inventory of available homes to purchase reached a record, or near record lows in many local markets, according to the Colorado Association of REALTORS (CAR).
Sales are good - June brought the second straight month of record highs for pending/under contract properties in the Denver metro area and across the state, showing a 30 percent increase from June 2019. Sold listings increased from May to June, up almost 64 percent.
This tells us that while there are fewer homes to buy as sellers hold off for various reasons, the homes that are for sale are moving quickly.
Inventory remains low - Last month, there was a 3.5 percent decline in new listings compared to June 2019’s overall inventory of homes. Townhomes experience a 40.7 percent drop from last year.
Prices continue to climb – CAR tells us that a number of factors pushed the average sales price for single-family and townhome/condos to record or near-record highs. In the Denver metro area, the average price of a single-family home increased almost 2 percent from May to June, and up more than 3 percent from last year. While the average price of a condo/townhome in the same area remained consistent from May to June, it is still up almost 5 percent from June 2019.
Statewide, single-family homes increased 2.4 percent from May to June, and are up more than 4 percent from last year. Condo/townhome sales increased 2.6 percent from last year.
COVID-19 considerations – While the housing market increases demonstrate that even during lockdowns and restrictions on open houses, and less flexibility for showings, that the right team of experienced, dedicated professionals can help you reach your goals.
Many experts are watching July economic numbers, as companies deplete stimulus loan funds, additional unemployment funds potentially end, and the hold on evictions expire in some areas. Any of these factors could impact the economy and seller/buyer behavior.
With COVID-19 cases on the rise in some areas, the landscape holds some uncertainty. Potential restrictions and “stay at home” orders could resurface, but we are prepared to help you navigate whatever your path looks like together.
Final thought - As many of us have worked from home for months now, some might be realizing that their current home is not conducive to their “new life.” We’re having these conversations with clients regularly and look forward to helping you find your ideal situation for now and forever. Contact us today at firstname.lastname@example.org or at 303-459-2162.