Colorado Real Estate News

Real Estate Market Trends

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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.

Colorado Real Estate News

Real Estate Market Trends

Despite the Pandemic, 2020 Denver-area Housing Market is Hot!

Amid the COVID-19 global pandemic, the 2020 metro-Denver housing market is on pace to outperform last year’s record-breaking real estate market.

If you recall, July of this year hit a record high number of home sales in any given month in metro Denver. In August, while home sales dropped compared to July by nearly 19%, the 5,959 total homes that did sell signified the most sales for any month of August on record. Yet, at the same time, the number of active listings at month end in August was down 41% year to date compared to 2019. So, if there were more homes available on the market in August, there is no doubt many more would have sold.

Single-family Homes are Scarce

Homebuyers looking to purchase a single-family home really struggled because there were 50% fewer single-family homes for sale year over year in August. Furthermore, single-family homes priced between $500,000 and $749,999 had only 0.66 months of inventory which is an extreme seller’s market where demand outpaces supply. Based on that number, the market would technically be out of homes for buyers to purchase in two to three weeks if no other inventory hits the market.

Home Prices Still on the Rise

As buyer demand continues to outpace supply, prices continue to go up. The average price for a single-family home hit another breaking record at $606,330 in August, an increase of 5.6% year to date.

Condo sales weren’t doing quite as well as average August prices were down month over month in August, but still up 2.6% year to date. The Denver market is a seller’s market across the board except for condos priced over $1 million where the market is more balanced between buyers and sellers.

If these current trends continue, COVID-19 may have just been a blemish on our year-end housing figures, as the Denver-area market is insulated by strong population growth, a variety of industries and quality of life that isn’t going anywhere.

Colorado Real Estate News

Homebuyers drive up prices as Denver inventory hits all-time low

The current housing market in the Denver area remains a competitive seller’s market. As inventory continues to diminish, homebuyers find themselves competing against one another.

See the link below to read more about the Denver housing market and demand for homes. Kentwood real estate broker Jill Schafer discusses her thoughts on the market, and market insights.

Click here to read the BusinessDen article.

Colorado Real Estate News

Real Estate Market Trends

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.

Colorado Real Estate News

Real Estate Market Trends

New listings flood the metro-Denver housing market in May

As stay-at-home restrictions stemming from COVID-19 loosened and businesses began phased openings in May, metro Denver had a surge of new listings hit the housing market, up 56% month over month to reach 7,312. Some of the surge can be attributed to sellers putting their homes back on the market after withdrawing them when showings were halted back in March.

Home sales down as expected in May, but homes under contracts skyrockets

The number of sold homes was down 20% month over month and 49% year over year in May, following the weeks of strict home-showing restrictions. The average sold price of a home dropped slightly, back below $500,000 to $495,925. That was 1.24% lower than April but 2.43% higher year to date.

Notably, homes under contract increased a substantial 115% from the previous month.

Home sellers had the upper hand, except in the Luxury Market

There were 7,170 active listings at the end of May, 4.6% more than April but 19% less than the previous year. Home sellers had the upper hand with low inventory in all price ranges except for homes priced over $1 million, where there was 9.5 months of single-family inventory and 25 months for condos. Anything over six months is considered a buyer’s market.

Only 115 homes sold and closed for $1 million or greater last month, down 29% from April and 59% year over year. The closed dollar volume in the luxury segment in May was $174.4 million, down 24.4% from April and nearly 60% year over year.

While the last few months were slower stemming from the pandemic, year-to-date data reflects how hot the metro-Denver real estate market was at the beginning of the year. For example, new listings year to date for single-family luxury homes is only down 1.47% and luxury condos are up 10.45% compared to this time last year.

Colorado Real Estate News

Real Estate Market Trends

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Dramatic shift in real estate since March.

 

Real estate in metro Denver, Fort Collins and the Front Range was primed to be one of the strongest on record at the beginning of March, but took a swift turn later in month due to the impacts of the pandemic. Stemming from Colorado Governor Jared Polis “Stay-at-Home” Executive Order for the entire state on March 25, real estate was classified as an essential service – and the way real estate is transacted has changed significantly.

 

As a company, Kentwood Real Estate has identified ways to safely comply with the order while facilitating transactions that really need to happen – and help clients who very much need guidance right now.

 

Virtual tools are being leveraged and they have proved to work well for homebuyers and sellers today, such as listing photography, virtual tours, e-signatures on contracts and contact-free closings. There are even new components of a contract, like the COVID-19 Addendum that allows a transaction to be extended in the case a homebuyer or seller is exposed or quarantined. These changes are necessary to keep our community safe, and ultimately the health and safety of our fellow neighbors is the most important factor when considering how to responsibly serve homebuyers and sellers.

 

As elements of the executive order begin to be lifted, these virtual tools will remain common practice and will continue to be necessary to maintain the safety of our community.

 

The real estate market throughout Colorado is in a healthy position to come out of this unprecedented situation with strength. There remains a lack of supply and high demand, and that is what keeps prices stabilized and even increasing. While the second half of March notably saw a significant number of homes taken off of the market, they will begin to come back on the market in the near future. The pent-up demand will be evident over the summer, and anyone thinking of selling in the next few months will be able to successfully do so.

 

*Written April 17, 2020. Updates may be available after this date.

Colorado Real Estate News

Real Estate Market Trends

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How the Coronavirus is Impacting the Denver Housing Market

Kentwood Real Estate is monitoring the ever-changing real estate landscape stemming from the coronavirus COVID-19 situation. We are staying informed and following the guidance of the CDC, Colorado Department of Public Health and the National Association of REALTORS® to ensure we are providing our clients with the ultimate in ethical, professional representation – we will take all measures to ensure a safe, productive experience.

 
What we are seeing in the metro-Denver residential real estate market today is that overall buyer demand in the local market is keeping activity strong. Historically low interest rates are motivating buyers, and we continue to see multiple offers. While many sellers are continuing to list their homes, some are choosing to pause temporarily. In the case more sellers wait, there will be an increased strain on housing inventory.


Housing Inventory Challenges

In February, while the stock market struggled with coronavirus fears, real estate stayed strong. Month over month, 5.6% more homes came on the market, 7% more homes shifted into a pending status, and 3% more homes closed.

 
The month ended with only 4,835 active listings, down 2% from January and nearly 20% year over year. For perspective, 5,083 listings went under contract in February; so, figuratively speaking, only 39 new listings came on the market that didn’t go into contract.


The ‘New’ Home Showing

To accommodate buyers in today’s new normal, listings are sanitized ahead of showings, and hand sanitizer and booties are readily available. Furthermore, virtual home tours are quickly growing in popularity. Facetime to more advanced 3-D technology are being utilized and becoming a preferred method of house hunting by many.

 
Real estate remains a good investment. We believe the security of real estate as a safe haven from both a psychological standpoint and an investment standpoint will resonate in future weeks and months. Real estate has always weathered economic turmoil in the long run, and will do so now.

Colorado Real Estate News

Real Estate Market Trends Article

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The New Year Kicks Off Briskly for Denver-area Real Estate

In January, a massive influx of new homes came on the market in metro Denver but were quickly scooped up by homebuyers.

 

While 4,853 new listings hit the market, up 89% from December, January ended with 4,941 active listings because homebuyers placed 43% more homes in pending status month over month which diminished the housing inventory surplus.

 

Contributing factors to the market heating up quickly included continued low interest rates and 18 days above the average temperatures in January.


On the Heels of a Slow December

In the entire residential market, there was about a 35% drop in the number of closed homes and sales volume month over month in January which was a reflection of the slower market activity at the end of 2019. As usually occurs this time of year, the days on the market were longer, averaging out to 45 compared to 41 in December.


Steady Home Prices

The average single-family home price was down from its summer highs, but higher year over year by 6.86% to $532,494. The picture is a little different for condos that experienced a 5% month-over-month drop in average price to $355,754, which is also down 0.37% from the same month last year; representing the first price drop in the month of January in at least the past four years.


Homebuyer Advantage in the Luxury Segment

In the Luxury Market, homes priced $1 million+, months of housing inventory increased to 6.92 for single-family homes and 8.5 for condos, up 41% and 68% month over month respectively. So, luxury homebuyers are not having to compete as much as other price segments.
Year over year in January, 11.7% more single-family homes and 20% more condos closed in the Luxury Market. The number of homes that closed in the entire residential Luxury Market was up 12.6% and total sales volume was up 4.7% from one year ago. However, sales volume and the number of homes closed in the entire luxury residential market were both down 46% month over month.

Colorado Real Estate News

REAL ESTATE MARKET TRENDS

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Statistically, Denver is Still in a Seller’s Market

With 1.73 months of housing inventory across all price ranges in the Denver area, we are technically still experiencing a seller’s market. Homes priced above $1 million have the most inventory, however, with single-family homes at 4.93 months of inventory, just under the five months that signify a balanced market. The month of July ended with 4.36 months of condo inventory. Large condo projects like Laurel in Cherry Creek have been closing on units, pushing up the number of higher-priced condo sales.

 

Home Prices are Peaking

The average sold price in the residential market in July was $498,960, down slightly from June’s $500,010, still up 4.27% year over year. The median sold price was up slightly month over month to $434,000 from $429,000. The average single-family home price was up 0.58% from June to $551,516. Year to date, the average sold price was up 1.83%. The average condo sale price was down 1.46% in July to $362,922; this is lower than the past three months, but up 3.01% year to date.

 

Sellers Homes on the Market for What Felt Like a Long Time Compared to Last Year

The median days on market for single-family homes and condos was up 37.50% month over month to 11 days. While that percentage may seem high, home sellers only had to wait three more days to sell their homes in July this year compared to last. Year to date it’s taking, on average, 29 days to sell a home compared to 24 days last year.

 

Metro Denver is a seller’s market by months of inventory, but continues to head toward a balanced market, with conditions favoring buyers — like historically low interest rates, price reductions, and more homes to choose from with more time to choose.

Colorado Real Estate News

Love Was In The Air In February’s Real Estate Market

February's Real Estate MarketLove was in the air in February’s real estate market

In addition to the number of homes under contract being up nearly 16 percent month over month in metro Denver, the Luxury Market (homes priced $1 million plus) faired particularly well too. Last month, 119 homes in the luxury segment closed for a total of $178,766,560 in sales volume, accounting for an over 23 percent increase from January.

Of course, long-term home closings in the Luxury Market are down 6 percent year over year, making the start to 2019 slightly more challenging. But, with 6.58 months of housing inventory, March is a great time to take the market back in bullish fashion for this luxury buyer’s market.

Yes, the selling—and buying—season is back!

In fact, the average number of homes sold in February’s real estate market increased by nearly 5 percent month over month. The culprit? Potentially the 5.6 percent increase in listings from January, which is 47 percent stronger than buyer choices a year ago. And because more single-family homes went under contract than were listed in February, housing inventory surplus is eroding.

For the condo market, however, the number of listings continues its four-year upward trajectory. In fact, there was a notable 79 percent rise in active listings at the end of February.

Freddie Mac also tells a story of ascent in the housing market: With the strong job market and a gradual decline in mortgage rates for the second straight month, housing demand continues in 2019.

No better place to be than at a Mile High

According to Forbes, Denver is the most competitive housing market in the nation. What does this mean for you? That there are far fewer homes for sale than buyers in Denver, putting this market solidly in a compression phase of the housing cycle. And what can you expect? That this cycle will continue while prices rise steadily through June. If it’s anything like years past, we’ll start to see buyer fatigue and inventory hit an annual high in July.

In February, there was a 47 percent increase in active listings year over year for the residential market as a whole, generating a 5.6 percent increase in new listings compared to January.

Denver is still in a strong seller’s market for single-family homes in the non-luxury segment, with only 1.92 months of inventory available.

As an interesting aside, Denver is sixth on the national list of apartments completed, with 11,700 apartments built in 2018.