Colorado Real Estate News

Market Trends

June 2021 Displayed the Theme of What Goes Down Must Come Up 

Overall, month-end active inventory increased 50.46% compared to May 2021, which is the highest percentage of month-over-month increase in the Denver Metro Association of REALTORS® records. 

Listings Were Up Meaning More Opportunity

The number of new listings was up 23.89% month over month. Likewise, the number of closed properties increased 9.29%. More houses hit the market in June, and therefore more people had the opportunity to buy, which is reflected in the month of inventory increasing to 0.50. While historically, this remains incredibly low, it does show a slight shift from the previous month, which was 0.39.

Buyers Are (Finally) Competing a Bit Less

In last month’s market, buyers must compete with less competition, and therefore, the extreme bidding wars have drastically decreased. Sellers are now adjusting their listing strategy to what the comps suggest. However, while inventory did drastically increase from the previous month, Denver metro is still at less than one-third of the total inventory compared to 2019 at this time.

Attached and Detached Homes in the Luxury Market Also Had More Choices in June

New listings were up 20.42% from May. However, even with more options, sellers in this market barely felt the seasonal slowdown, with pending sales down only 1.51% month over month. Pending year-to-date sales were up 88.04%, and closed sales were up 138.20%.

June Also Reported Increased Sales in the Detached Luxury Market

Sales increased 24.20% from May to June and were up 132.28% year to date. On average, people buying luxury homes paid 104.74% of the list price in June, up 5.26% year to date. On the other hand, appearing to pull through the COVID-19 slump, the attached home market’s number of closed sales is up 306.25% year over year while closed sales are up 193.94% year to date. 

*Written July 11, 2021. Updates may be available after this date.

Colorado Real Estate News

Denver’s Housing Market Remains Tough For Buyers As Inventory Remains Low

September 2020 revealed the toughest market to buy a home in metro-Denver’s history. Housing inventory can’t keep up with the buyer demand, putting us in a very strong seller’s market. The average price for both single-family and condo homes in Denver hit a record high.

“It is incredibly difficult for buyers today, they’re just having to work like crazy,” said Jill Schafer broker at Kentwood Real Estate. “People are having to put all their cards on the table.”

Click here to hear more about the Denver housing market, and what else the DMAR October Market Trends report revealed.

Link: CBS4 Denver – Denver’s Housing Market Remains Tough For Buyers As Inventory Remains Low

Colorado Real Estate News

As single-family homes get snatched up, downtown condo listings stack up

While you may have heard that homes are being sold quickly and at record prices, one piece of the Denver real estate market doesn’t quite compare. The downtown condominium inventory continues to rise, and the prices continue to drop.

Read the full article in BusinessDen, and see what our Kentwood City Properties broker, Dee Chirafisi, has to say about the downtown market. Dee has been working in the downtown market for over 25 years now and shares her expertise on the subject, and what she believes will happen in the coming months.

Read the full article here: As single-family homes get snatched up, downtown condo listings stack up

Colorado Real Estate News

Denver Home Prices Continue to Rise

The average price of a single-family home sold in the Denver area hasn’t hit $500,000 yet, but it’s about as close as it can get. The average price of a home sold in June hit a record $498,762, up 7.19% from a year earlier, according to the latest report from the Denver Metro Association of Realtors. The average price of a condo also hit a record at $333,800. And while one month does not make a trend, with a half years’ worth of data under our belt, 2017 is on target to set a record for sales volume. The metro area hit a record $11.86 billion in total home sales in the first half of the year, a 14.53% jump from the previous all-time high in 2016. In short, buyers have already paid $1.5 billion more for homes than they did in the first six months of last year.

For Sale Sign

Other notable metrics:

  • There were 7,059 active listings on the market at the end of June. The 3.87% year-over-year increase in listings is not as big of a jump in the supply as needed, but at least it is moving in the right direction.
  • At the half-way point of the year, 27,521 homes and condos have sold, a 5.81% improvement from last year.
  • There is a mere 5.6-weeks of inventory of single-family homes on the market, a 7% drop from inventory levels at the end of June of last year.
  • Denver, once again, was ranked No. 4 by Case-Shiller in its latest report. Denver booked an 8.2% appreciation rate in April, compared with 5.7% for the 20 big cities tracked by Case-Shiller. Only Seattle, Portland, and Dallas showed a bigger bump in home values than Denver.

The luxury market of homes priced at $1 million or more was especially strong in June. An analysis by Kentwood Real Estate, revealed that 172 single-family homes sold for at least $1 million, a record for June. Last month’s luxury home activity was up 25.5% from the 137 homes that traded hands in June 2016. The closed sales volume for luxury homes hit $258.985 million, also a record for June and 27.5% higher than in June 2016, Kentwood reports. In the first half of the year, a record 677 luxury single-family homes sold, Kentwood notes, a whopping 31.7% jump from 514 in the first half of last year. The closed dollar volume for luxury homes topped $1 billion for the first time in the first half of a year, a 30.7% jump from the $785.656 million sold in the first six months of last year.

With such a sizzling market, understandably you might think it is prudent to wait on the sidelines for the market to cool. While no one knows what’s in store for the Denver housing market, nothing indicates that demand will slow enough to make this a buyer’s market. A more likely scenario is that appreciation will slow a bit. But even a 5% uptick on a $500,000 home is still $25,000. So, if you are in the market to buy, contact a trusted real estate professional.

The longer you wait, the more you are likely to pay.