High Buyer Demand in Metro Denver
A record number of Denver-area homes on the market went under contract in June, home prices are on the rise, mortgage rates are a record low and the market is experiencing near record-low housing inventory. These factors are making for a strong seller’s market.
In June, a record number of homes, 7,676, shifted into a pending sale status, up 16% month over month and 27% year over year. Additionally, weekly home closings were back above 2019 levels, ending 11-weeks of a COVID-19 induced housing slump.
Home Prices Rising
In March, pre-COVID-19, the average price for a residential property in metro Denver zoomed above $500,000 for the first time, to $513,535. That price then dipped back down below the half-million-dollar mark during the home-showing shutdown and uncertain economic times in April and May. In June, however, average prices bounced back up to $509,736, the second-highest average price for residential real estate in Denver.
Luxury Market is Coming Back
In June, 7,364 homes were put up for sale in all housing price points, but demand was even higher. More homes were put under contract than came on the market for sale. Less inventory meant home sellers had more power. The only segment of the market in which homebuyers had the edge were condos priced over $1 million. Overall, after the halt earlier this year as a result of showing restrictions and consumer uncertainty stemming from COVID-19, the Luxury Market is picking back up.
The number of homes sold in the single-family luxury segment was up 100% in June to 230 from 115 in May, and up to 15 from eight for luxury condos, an 87.5% increase month over month. At the end of June, there were 413 pending sales, up 38% from last month and an impressive 59% from last year.
Year to date, Luxury Market listings were up 1.76% over last year. There has been double-digit growth since 2016, so under 2% growth is a significant figure that depicts the true damage stemming from COVID-19.
*Written July 7, 2020. Updates may be available after this date.