2020 Presented Historic Sales Volume in the Denver Metro Real Estate Market
In December, the Denver housing market continued to show buyer resiliency in pursuing homeownership. For the first time ever, there were 62,985 homes purchased throughout the year, 6.95 percent more than 2019.
According to Steve Danyliw, past Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®, in 1990 the Denver real estate market closed only 25,619 homes, which means in 2020 the market closed 145.9 percent more homes. Over the last 31 years, home prices continue to see robust growth with the average price increasing a staggering 457 percent.
Don’t Count Out Ultra-Low Mortgage Rates
Despite the growth in average price, Lawrence Yun, Chief Economic and Senior Vice President of Research at the National Association of REALTORS®, added that buyers should focus on the current low mortgage rates, which mean the Denver area is actually more affordable now than a year earlier even though home prices rose 14 percent. The 30-year fixed rate has dropped more than one percentage point over the past 12 months and is hovering into record lows.
Inventory Is Unsurprisingly Still Low
December presented another historically low month of inventory with 2,541 properties on the market: the first time Denver has seen under 3,000 active properties.
New Listings for Luxury Homes Climb
However, new listings for the Luxury Market were up 14.65 percent compared to 2019, with pending sales climbing to 36.50 percent and closed sales reaching 34.74 percent.
Meanwhile, the Classic Market Stays Competitive
With the average days in MLS at 20 days, 23.08 percent lower than 2019, and median days in MLS at only six days, 45.45 percent lower than 2019, the Classic Market remains strong. 31,913 new residential listings hit the market in 2020, which is 2,255 fewer and 6.60 percent less than the 34,168 that came available in 2019.
*Written January 8, 2021. Updates may be available after this date.