September was the Toughest Time in History to Buy a Home in Metro Denver. Why?
Record-breaking low housing inventory was a key factor to September being one of the most challenging times in history to buy a home in the Denver market.
The 5,301 active listings at September’s month end represented the lowest amount of active housing inventory available on record for any month of September by 2,215 homes. The median days on market in the entire residential market was six, which was three days lower than the previous record set in September 2015 and 2016. For both single-family and condo homes, there were more closed and pending transactions than ever before reaching 5,850 and 6,376 respectively.
Housing inventory can’t keep up with the high level of homebuyer demand. This is further evidenced in that the months of inventory hit an all-time low at 0.91 months, signifying a very strong seller’s market.
Record-breaking Home Prices.
Furthermore, the median home price for both single-family and condo homes hit a record-breaking high at $510,000 and $334,752 respectively. The total sales volume of $3.15 billion represents the highest amount for any September on record and the third-highest month of all time.
Luxury Market is Red Hot Too.
Luxury Market home sellers were having to think fast and figure out their next move because the average days on market for a luxury home was down 39.5% year over year at 46 days.
Year over year, 81% more luxury homes sold in September and 87% more single-family homes closed. The luxury condo market is also showing signs of strength with 32% more sold compared to 2019.
Additionally, compared to last year, new listings priced $1 million+ were up 26% while pending listings were up a whopping 116% in September. Single-family luxury homes were also hot in September with a 125% increase in pending sales compared to this time last year. The luxury condo market was just as hot with a 58% increase in pending sales going under contract from one year ago.
*Written October 9, 2020. Updates may be available after this date.