MARKET REPORTS
DENVER METRO REAL ESTATE MARKET - MAY 2022
MAY 2022 - DENVER METRO REAL ESTATE MARKET -
April 2022 real estate showed that sellers are eager to get their homes on the market during prime seasonality, and buyers shouldn’t sit on the sidelines..
April 2022 real estate showed that sellers are eager to get their homes on the market during prime seasonality, and buyers shouldn’t sit on the sidelines.
While inventory is on the rise, so are prices. The average price of a single-family detached home in Denver Metro is $825,073, representing a 3.93 percent increase from last month. With consecutive months of increased prices and interest rates, a buyer's monthly mortgage has increased as well. The average close-price-to-list-price ratio in April for the detached market was 107.29 percent. With the increase in supply, the close-price-to-list-price ratio is an example of how the market was reacting a month ago.
The relationship between closed sales and month-end active inventory impacts the supply and demand of the market and, therefore, many other statistics including average sales price. The most significant factor influencing the supply and demand of this market is interest rates. With many individuals refinancing due to low-interest rates on their house and interest rates north of five percent, there is minimal financial incentive to move.
“While buyers may be thinking they overpaid if they bought two months ago, this is not the case,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “They likely got a slightly lower interest rate and the market is continuing to rise, just not as fast. In the chaos of the recent market, buyers had been waiving their inspections, doing full appraisal gaps and even offering to make their earnest money non-refundable before getting an inspection. Now, we are shifting to a more responsible market. There will still be bidding wars, appraisal gaps and limited inspection items on future properties, but the frequency of those will be less.”
The increased interest rates are already impacting the amount of inventory sitting on the market. While Denver Metro is still relatively low in inventory, the word “historic” is no longer applicable as there were 610 fewer properties on the market last year compared to today. The market usually sees an 8.59 percent increase in month-over-month inventory. This month, it saw an outstanding 44.26 percent increase.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999).
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Meanwhile, in the Luxury Market, inventory is on the rise, with a 57.65 percent increase in new listings from this time last year. However, as a result of inflation, more homes will cross the threshold into the Luxury Market simply due to list price or more likely due to bidding wars that end 20 percent or more over the original ask price.
In part due to seasonality, new listings for detached homes rose 26.62 percent from last month. However, this is a 63.73 percent jump from last year for new listings. Pending sales rose 27.15 percent to 562 properties and 599 closed homes, a 17.91 percent increase from last month. Unsurprisingly, the average days in MLS decreased to 14 days from 17 last month, while the median days in MLS of four held strong month-over-month.
The close-price-to-list-price ratio jumped slightly to 108.45 percent up just 0.39 percent from last month. Most notably, this data point was 102.62 percent this time last year, which means there has been a 5.68 percent rise in the last year. As such, the price per square foot total also jumped 16.27 percent from last year to $386 per square foot.
“The spring selling season is off to a great stat and it feels as though more inventory is becoming available than even the data represents,” said Libby Levinson-Katz, DMAR Market Trends Committee member and Metro Denver Realtor®. “My partner and I have had more listings this year than we’ve ever had which feels like a slight change in the marketplace with more Denverites opting to either sell investment properties, move out of state or jump into this crazed market. For perspective, the Luxury Market year-to-date has 2,350 new listings with 1,793 closed. Back in 2018, there were 1,283 new listings with 649 closed properties.”
#DMAR Market Trends
Data Source: REColorado
DENVER METRO REAL ESTATE MARKET - APRIL 2022
APRIL 2022 - DENVER METRO REAL ESTATE MARKET -
March 2022 real estate showed that despite increased inventory, there is no sign of a market cooldown anytime in the near future.
March 2022 real estate showed that despite increased inventory, there is no sign of a market cooldown anytime in the near future.
With a large increase in month-end active and new listings hitting the market, a slight seasonal shift will positively impact buyers who have started to feel fatigue in the residential market. At the same time, current homeowners continue their unprecedented growth in equity.
With a historically high average sales price of $705,812 and increased interest rates, many buyers who saw their potential monthly payments drastically increase received a sign of reprieve. Month-end active inventory went up 81.16 percent from February to March. The additional 995 new listings on the market at the end of the month also served to slightly aid the balance of supply and demand. While the percentage increase is substantially higher, having such low initial numbers yield a higher percent change. Along with the 43.57 percent increase in new listings, this will serve to help balance the accelerated price appreciation the market has recently seen.
“Earlier in the year, buyers offered six figures above the asking price while competing with dozens of offers,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “With the recently increased inventory, it is more common to compete with just a few offers. Although competition has loosened, the residential real estate market has always been slow to react to change. Even with only a few competitive offers, it’s become standard for buyers to come in very aggressively on offers, making the other offers start at an elevated price and terms. With record-high sales prices, interest rates increasing north of 4.5 percent and an average close-price-to-list-price ratio of 106.46 percent, the monthly mortgage of a traditional buyer has never been higher.”
The Denver market currently sits at 19.88 percent appreciation compared to last year. While waiting may create more options, it does not guarantee more value. Last month alone, the average sales price increased 9.02 percent at $58,418. The market continues to move forward rapidly, just not as fast as the past couple of months, and the decreased speed will be felt in the coming months, creating the allure of more balance.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999).
Meanwhile, in the Luxury Market, buyers saw the largest rise in inventory of any price point. House hunters in the $1M+ range felt some relief from the historically tight market with a 58.22 percent increase in the detached market and a 60.53 percent increase in the attached market for the number of homes available for purchase from February.
Even with the rise in inventory, bidding wars persisted, with luxury homes going an average of 7.66 percent over list price. The average luxury home price increased 7.8 percent month-over-month, as it has done since the beginning of the year.
“Offers of $300,000 over asking price were not uncommon, with one home we know of closing $600,000 over list price,” said Colleen Covell, DMAR Market Trends Committee member and Metro Denver Realtor®. “The dramatic escalations in prices of expensive homes may intimidate some buyers, leaving them feeling that the market is reaching its peak, and they should pause their search in hopes that prices will stabilize. But sellers need to stay grounded in their pricing strategies as buyers can sense when a house is priced too high, even in this hyper-charged market. We are seeing sellers get carried away with the price frenzy and end up losing out.”
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Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999).
Meanwhile, in the Luxury Market, buyers saw the largest rise in inventory of any price point. House hunters in the $1M+ range felt some relief from the historically tight market with a 58.22 percent increase in the detached market and a 60.53 percent increase in the attached market for the number of homes available for purchase from February.
Even with the rise in inventory, bidding wars persisted, with luxury homes going an average of 7.66 percent over list price. The average luxury home price increased 7.8 percent month-over-month, as it has done since the beginning of the year.
“Offers of $300,000 over asking price were not uncommon, with one home we know of closing $600,000 over list price,” said Colleen Covell, DMAR Market Trends Committee member and Metro Denver Realtor®. “The dramatic escalations in prices of expensive homes may intimidate some buyers, leaving them feeling that the market is reaching its peak, and they should pause their search in hopes that prices will stabilize. But sellers need to stay grounded in their pricing strategies as buyers can sense when a house is priced too high, even in this hyper-charged market. We are seeing sellers get carried away with the price frenzy and end up losing out.”
#DMAR Market Trends
Data Source: REColorado
DENVER METRO REAL ESTATE MARKET - MARCH 2022
MARCH 2022 - DENVER METRO REAL ESTATE MARKET -
February 2022 continued to be a pillar of strength in the Colorado economy, despite global uncertainty and upheaval. With 5.36 percent month-over-month appreciation and interest rates increasing, an individual's buying power steadily declined. While 2020 and 2021 took different paths, there is one common denominator: hyperactive buyer demand.
February 2022 continued to be a pillar of strength in the Colorado economy, despite global uncertainty and upheaval. With 5.36 percent month-over-month appreciation and interest rates increasing, an individual's buying power steadily declined. While 2020 and 2021 took different paths, there is one common denominator: hyperactive buyer demand.
Last year at this time, there was little inventory. This year, there’s nearly half as much at 48.88 percent less, which will likely translate to fewer homes being bought and sold over the course of the year as there is less to choose from in the Denver Metro area prompting the continuation of extreme bidding wars.
With 5.36 percent month-over-month appreciation and interest rates increasing, an individual's buying power steadily declined. While 2020 and 2021 took different paths, there is one common denominator: hyperactive buyer demand.
The first two months of 2022 were dictated by a lack of inventory and sales. By the end of February 2021, 8,761 properties hit the market. In 2022, the market has only seen 7,671, a 12.44 percent decrease in listings in two months. This number directly correlates with the 13.31 percent decrease in closed properties so far this year. The lack of supply coupled with the surplus of buyers has caused prices to rise quickly, leading to an unprecedented close-price-to-list-price ratio of 104.75 percent.
“Last month, I had clients close on a house for $10,000 under asking price in the same week that I had clients close on a house $250,000 over asking price,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “The biggest difference between the two was location and condition. With so many properties closing six figures over asking price, Realtors® must take a deep dive into their responsibilities as we wear a lot of different hats: therapist, analyst, driver, motivational speaker and, most importantly, educator. Our job is not to make decisions for our clients, but to help guide them. That means not just providing comps but also an explanation of the comps. Explain the market stats and what it takes for a buyer to get under contract and then let them decide their own fate. In an emotional market, the data still matters.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999).
The Luxury Market was alive and well in February as it continued to show strong growth. month-over-month, the sales volume increased 43.14 percent for detached homes and 32.04 percent for attached. The market also saw an increase in listings above $1 million, with 434 new listings in February compared to 330 in January. The increase in listings was a welcome sight; however, the intense demand absorbed those listings quickly, with 97 percent of new listings going under contract in February. In general, the Luxury Market has less than two weeks of inventory for both attached and detached homes.
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The median days in the MLS was just five days for detached homes and three days for attached homes. Most properties within this price segment will go under contract within the first week of hitting the market. In February, the close-price-to-list price was 105.52 percent, up 3.61 percent month-over-month and up 5.84 percent year-over-year. New listings year-to-date for properties over $1 million, for both attached and detached, were up 17.18 percent, while the market as a whole has seen a 7.44 percent decrease in new listings compared to this time in 2021.
“A feeling of uncertainty rests throughout the Luxury Market as the pandemic stressed the supply chains while demand hit all-time highs,” said Amanda Snitker, DMAR Market Trends Committee member and Metro Denver Realtor®. “With the recent Russian invasion of Ukraine, the Luxury Market could be one of the first to show signs of stress. Many buyers cash out stocks or cryptocurrency to purchase more expensive homes or second homes; with the volatility of the financial markets, this may cause pause for some. Spring is seasonally the best time to sell and the Luxury Market has robust market indicators; however, with rising interest rates, financial market instability and inflation, now may be the best time to make your move.”
#DMAR Market Trends
Data Source: REColorado
DENVER METRO REAL ESTATE MARKET - FEBRUARY 2022
FEBRUARY 2022 - DENVER METRO REAL ESTATE MARKET -
January 2022 suggests that in the new year, a new strategy must be implemented in order to buy a home. While traditionally the market sees a 70 percent increase in new listings from December to January, the market ended down 17.77 percent in new listings compared to 2021, a 31.04 increase from the previous month. Likewise, the market ended with month-end active listings at a historic low of 1,184. To put into context, that is over 10 times less inventory than normal.
January 2022 suggests that in the new year, a new strategy must be implemented in order to buy a home.
While traditionally the market sees a 70 percent increase in new listings from December to January, the market ended down 17.77 percent in new listings compared to 2021, a 31.04 increase from the previous month. Likewise, the market ended with month-end active listings at a historic low of 1,184. To put into context, that is over 10 times less inventory than normal.
Last year at this time, there was little inventory. This year, there’s nearly half as much at 48.88 percent less, which will likely translate to fewer homes being bought and sold over the course of the year as there is less to choose from in the Denver Metro area prompting the continuation of extreme bidding wars.
“Prices dropped slightly, both average and median, but that is not reflective of our current market but rather 90 days ago,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “Based on the historic low inventory and current market demand, prices will likely skyrocket in the next three months. With the low inventory and competition, we are expecting prices to greatly increase in the first half of this year. Creativity in writing offers has been instrumental for a successful outcome. While many buyers grow frustrated through the process, leading to potential burnout, I want to emphasize that there are still diamonds in the rough.”
With historically low inventory, hyperactive demand and some outlining stories, the major question is what buyers and sellers can do to prepare in this unprecedented market? If someone is a buyer, it is imperative to do one’s due diligence before touring a property, as well as communicating with one’s Realtor® and lender to understand what one’s comfort level is, which may vary from what someone has been originally approved. In this market, creating a list of “must-haves” and “deal-breakers” can help to direct your decision-making even more.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999).
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In the Luxury Market, the question buyers and brokers are asking lately is whether $1 million is really considered luxury at this point in time? The average sales price for the Luxury Market remains at $1.6 million, and it has been for many years. In 2014, when DMAR’s Market Trends Report was started, the average price for a single-family home was $380,848 and the average price for an attached property was $238,229. Today, the average sales price in Denver for a single-family home is $689,711, and $450,244 for an attached home, and the average for the Signature Market is in the mid- $800,000’s.
Inventory for the January Luxury Market was up exactly 100 percent for detached luxury homes, and up 82.61 percent for luxury attached properties. It didn’t take long for all that inventory to get scooped up though, as 43.48 percent of the detached luxury homes and 19.35 of the attached luxury homes went under contract. While Denver Metro had more inventory, the sales volume was down for detached and attached segments.
The luxury detached sales volume was down 49.86 percent from the prior month and 11.78 percent from one year ago, as Denver saw 47.29 fewer luxury properties close from the prior month and 9.51 percent from this time last year. The attached luxury sales volume was down 48.23 percent and had 55.36 percent fewer luxury condos sold from the prior month and 13.79 percent from one year ago.
The luxury attached segments had the most inventory out of all the segments at 2.68 months while the median days in MLS was three, the average days in MLS increased 97.96 percent, giving buyers a little more time to make a decision. With several new construction condo building listings still in the market, this may give buyers a few more choices. While there is a bit more inventory in the attached luxury segment, sellers are still getting 101.99 percent close-price-to-list-price. This represents an increase of 0.68 percent from the prior month and 4.50 percent from one year ago.
“Now is the time to sell in the Luxury Market,” said Brigette Modglin, DMAR Market Trends Committee member and Metro Denver Realtor®. “Both the attached and detached homes are getting over 100 percent of asking price and you’re able to make your next move very quickly. The question is where will you make it?”
#DMAR Market Trends
Data Source: REColorado
DENVER METRO REAL ESTATE MARKET - JANUARY 2022
JANUARY 2022 - DENVER METRO REAL ESTATE MARKET -
January 2022 kicks off another year that is likely to cater to an extreme seller’s market. Throughout the ebbs and flows of 2021, interest rates remained low and buyer demand stayed consistently high. DMAR found there were more homes purchased in 2021, 63,684 than any previous year. While demand was at an all-time high, the number of new listings that hit the market throughout the year was down 5.26 percent, which is one of the reasons why the market ended the year with another historic indicator, month-end active listings.
January 2022 kicks off another year that is likely to cater to an extreme seller’s market.
Throughout the ebbs and flows of 2021, interest rates remained low and buyer demand stayed consistently high. DMAR found there were more homes purchased in 2021, 63,684 than any previous year. While demand was at an all-time high, the number of new listings that hit the market throughout the year was down 5.26 percent, which is one of the reasons why the market ended the year with another historic indicator, month-end active listings.
At the beginning of January, there were only 1,477 active properties on the market in the entire Denver Metro area, which is 11,175 fewer houses on the market than normal. Based on the sustained demand for housing and lack of inventory, the market is projected to see double-digit appreciation this year, which it has not seen in back-to-back years of double-digit appreciation since 2015-2016 and 1998-2000.
There are a few factors that will dictate this continued acceleration in house prices. The first is supply and demand. There are currently 41.87 percent less houses on the market at the beginning of January 2022 than there were at the beginning of January 2021. The second factor is that conforming loan limits increased to $684,250 in the Denver Metro area. That is $37,050 higher than the nationwide conforming limits. This means that the majority of buyers can purchase a home for $750,000, putting down 10 percent without it turning into a massive loan.
“Last year, when comparing year-over-year data, it felt easy to call 2020 an outlier year,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “As we forecast 2022, it is a fair assumption that what was previously an outlier is quickly becoming the norm. With the historic lack of supply and continued demand, cities may start to change their policies but that won’t solve the problem in the short term. If you are a buyer in this market, setting the right mindset is incredibly important. In such a demanding and stressful process, it is imperative to work with a professional to help you navigate.”
Through hardship and perseverance, the Denver Metro real estate market has been the backbone of Colorado’s economy. The question remains whether the market will see significant changes in the real estate market from last year. In this market, time is money and it’s likely not to change soon.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999).
In the Luxury Market, Denver Metro prices continue to climb with more homes entering the ranks of the Luxury Market every month as demand continues at a rapid pace. Within the past two years, the number of homes that sold within the Luxury Market more than doubled. The single-family segment of the market closed 4,672 single-family homes, a 53.99 percent gain year-over-year, while the attached segment experienced a 140.46 percent gain with 630 homes sold.
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During the holidays, seasonal slowdown was palpable, and as a result the number of new listings and pending and closed properties traditionally shows a sharp drop off with the focus off real estate. While active homes on the market dropped 41.87 percent market-wide, the Luxury Market continued to outperform with a five percent increase in December for new listings.
New listings for detached homes climbed slightly by 1.40 percent from last December, while closed listings increased 9.06 percent. Even with a seasonal shift, the average days in MLS fell 30.19 percent to 37 days and median days in MLS dropped 59.09 percent from 22 days to nine compared to last December. Meanwhile, the attached market continued to shine as new listings climbed 35.29 percent year-over-year with 23 new listings. Closed sales came in at a staggering 89.66 percent gain with sales volume following closely with a 75.36 rise with $75,932,105 closed volume.
“As we head into 2022, the Luxury Market will continue to stay strong,” said Libby Levinson, DMAR Market Trends Committee member and Metro Denver Realtor®. “As home prices continue to soar coupled with increased conforming loan limits, I expect to see similar numbers next December. Additionally, we tragically lost almost 1,000 homes in the Marshall and Middle Fork fires, with many of those homes falling within the Luxury Market. The loss of those homes puts further pressure on an already tight real estate market.”
#DMAR Market Trends
Data Source: REColorado
Metro Denver Real Estate Market Report - DECEMBER 2020
DECEMBER 2020 - DENVER METRO REAL ESTATE MARKET
Greater Denver Metro real estate market continues to bolster all-time records as November data emphasizes the desirability of a home in COVID-19.
Greater Denver Metro real estate market continues to bolster all-time records as November data emphasizes the desirability of a home in COVID-19.
#DMAR Market Trends
Data Source: REColorado
In November, the Greater Denver Metro housing market continued to boost all-time records, with median days in MLS for detached single-family homes at a very speedy five days, representing a tie of the lowest number on record, having seen five days only five times ever before.
Active listings for both attached and detached single-family homes came in at 3,415, surpassing the previous low set in December 2017 of 3,854. There was additionally a record-high for November average close price for combined single-family detached and attached properties, and detached single-family homes at $549,756 and $615,766 respectively. The previous record for combined single-family detached and attached properties was in 2019 at $486,012.
While the holiday months do generally see a decline in inventory, months of inventory this particular November hit another record-low at just .71, easily beating October 2020’s former lowest record at .81. For the single-family detached market, Denver only had 1,755 houses currently available for sale, representing just .51 months of inventory. This means, in theory, if no houses were put on the market for two weeks, there would be nothing left to sell.
While typically, the most active amount of inventory is in the $500,000 - $750,000 price range, this November the dial turned and it was homes priced over a million dollars. Presently, there are 561 homes on the market priced at over a million dollars, almost one third of the overall inventory.
“For many, the holiday season will be a different experience when compared to previous years due to COVID-19, and the same can be said for the Greater Denver Metro market,” said Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “For sellers, this market continues to push the prices at which they can list the house, leaving them with a choice to decide on multiple offers in the hopes that the buyer they choose will actually make it to the closing table without any inspection or appraisal issues. Meanwhile, buyers are competing on most properties that hit the market, and up terms to secure a place they can call home, all while trying to take advantage of the low interest rates.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $400,000 and $499,999).
In November 2020, new listings for the Luxury Market were up 17.09 percent compared to last year, with sales still up year-over-year at a staggering 69.59 percent.
“As homes in the COVID-19 era have rearranged to accommodate school, work, hobbies, date night and entertainment, the trend to “go big” and get a new home is ringing true all the way into the new year,” said Jenny Usaj, DMAR Market Trends Committee member and metro Denver REALTOR®. “While the Luxury Market unsurprisingly continues as a seller’s market, there is optimistic news for buyers. New listings are up 17.09 percent from last year, and looking at this time last year, we recorded 158 residences for sale, while this November there are 185.”
Meanwhile, Months of Inventory for detached homes in the Classic Market dropped to just over .27, arguably making the Classic Market the most competitive segment of the Denver real estate market.
“With home inventory continuing to decline and record low interest rates, it’s a perfect storm for home shoppers right now in the Classic Market, said Drew Morris, DMAR Market Trends Committee member and metro Denver REALTOR®. “Buyer demand is so high that based on the number of detached homes on the market and the rate at which buyers are scooping them up, it would take only about a week for all of the detached homes inventory in the Classic Market to dry up.”
For detached and attached homes in the Classic Market, there were 1,781 new listings recorded in November, which was a 35.70 percent drop from October and a 2.64 percent drop from last year. The 2,319 pending sales in November outpaced the number of new listings, furthering the lack of inventory this month and the number of closed sales dropped by 25.38 percent from October and 4.98 percent from last year. Despite high demand from buyers, closed sales continue to decline because there are so little homes on the market to actually buy.
Honing in on the Premier Market, the median days in MLS for detached and attached residential homes is down to only six, down 76.00 percent from November of last year when that number was 25. Compared to October, the Premier Market has 47.82 percent fewer new listings. However, closed homes have only decreased by 23.63 percent, which means the Greater Denver Metro area is moving through the little inventory at a fast pace, with 50.21 percent more closings this November than last, and only 8.87 percent more listings.
“Whispers that the attached home market is suffering due to COVID-19 don't ring true in the Premier Market as we look at November figures and year-to-date figures, said Taylor Wilson, DMAR Market Trends Committee member and metro Denver REALTOR®. “This November, we saw 58.59 percent more closed sales than November 2019 with 7.79 percent less inventory. Buyers who are willing to compete and have their financing ready to go will succeed in this market, and if we don't see supply surge or demand dwindle, we are in for a hot winter.”
Metro Denver Real Estate Market Report - NOVEMBER 2020
NOVEMBER 2020 - DENVER METRO REAL ESTATE MARKET
Average and median close prices break historical records, shattering September 2020, as months of inventory dropped to an even more historic low.
Average and median close prices break historical records, shattering September 2020, as months of inventory dropped to an even more historic low.
#DMAR Market Trends
Data Source: REColorado
In October, the Greater Denver Metro area’s housing market remained consistently hot. There was a record-high for average sales price for both single-family detached and attached properties at $625,100 and $393,733 respectively, as well as a record-low of months of inventory at an astonishing 0.81.
While October is generally consistent in the momentum of which it transitions from September and into November, the compounded effects of the COVID-19 months have created historic numbers with only 4,821 active listings. This represents the lowest amount of active inventory for any October on record by nearly 2,000 listings. Due to the lack of inventory, buyers were rushing to make an offer which explains why the 24 days in MLS also represents the lowest on record.
“October continued to defy seasonality as new records were broken by both buyers and sellers,” said Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Sellers continued to have little competition as escalation clauses, appraisal gap waivers and “as-is” offers were frequently used, while buyers had to fight hard, making concessions in all of the ways referenced above, to secure a place they could call home.”
While there is not an abundance of inventory, it has not slowed down the actual process of buying and selling with 5,984 closed transactions. November could represent another big month as a record 6,141 pending transactions occurred throughout October.
According to Abrams, for sellers, this market translates into having to pick through offers with a fine-tooth comb, hoping that the potential buyer and the transaction is a smooth process. Meanwhile, buyers need to be prepared to act quickly and confidently despite the nerves that ensue when making such a huge investment. While buyers and sellers had different stories to tell, there was a common theme throughout the month of October: prices were on the rise.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). In October 2020, closed sales for detached and attached luxury homes skyrocketed to over 115.74 percent from this time last year while the sales volume climbed 126.70 percent to over $668.6 million for the month of October.
With low interest rates and colder weather around the corner, buyers are pushing their budgets to find the perfect home for the holidays. Detached closed properties were up 19.52 percent from last month and up 32.15 percent year-over-year. With 1.88 months of inventory and median days in MLS dropping 8.33 percent to just 55 days, detached luxury homes are firmly sitting in a seller’s market.
“Detached homes are the preference for many luxury buyers today who want more land, distance from their neighbors, and multiple private spaces, outside of the bedroom count, that can be utilized as home offices and classrooms for remote learning,” said Libby Levinson, DMAR Market Trends Committee member and metro Denver REALTOR®. “While the Luxury Market firmly continues as a seller’s market, there is some good news for buyers. There are more detached home choices than last year with new listings up 14.62 percent.”
On the other side of the coin, the attached Luxury Market is moving slower as buyers’ preferences lean towards detached homes. While there were 83.87 percent more listings this year than last year and 11.76 percent more listings than last month, the attached market is moving slower than the detached segment. As the average days in MLS climbed to 50 days up from 35 days last month and median days on market increased to 23 up from 17 days last month. Pending sales were down 28.95 percent down from last month but are up 28.57 percent compared to this time last year, according to Levinson.
“Don’t count the attached market out though,” she adds. “While the months of inventory is a stark contrast to the detached segment at 5.7 months, the year-over-year data proves new listings have steadily climbed from 233 in 2016 to 472 in 2020 and pending sales have climbed from 103 in 2016 to 247 in 2020. While the buyer pool may favor detached homes, the competition is less fierce with the close-price-to-list-price ratio dropping to 97 percent, down from 103.02 percent in 2016.”
Metro Denver Real Estate Market Report - OCTOBER 2020
OCTOBER 2020 - DENVER METRO REAL ESTATE MARKET
Metro Denver’s housing market saw major decline with home showings dropping to a record low mid-April due to the Stay-at-Home order. With restrictions lifted to Safer-at-Home on April 27, approximately 3,500 showings were scheduled that day, more than any other Monday in 2020.
Denver Metro Association of REALTORS® reports new records in September 2020 in the categories of the lowest number of active listings, median days on market and months of inventory, as well as the highest number of new listings, pending and closed homes, median home prices and total sales volume.
#DMAR Market Trends
Data Source: REColorado
IThe 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 properties. This translates into the toughest market to buy a home in metro-Denver’s history according to DMAR Market Trends Committee Chair and Metro Denver REALTOR® Andrew Abrams.
In September 2020, there were 3,041 single-family homes available for sale, a decrease from the previous low of 5,693 in September 2017. 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 homes that sold and 6,376 homes in pending status.
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. The previous record low was this past August 2020 at 0.92 months.
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.
These records, along with various other contributing factors, set the tone for why metro Denver is increasingly such a competitive market.
According to Abrams, there are several explanations for why the market is so competitive right now; not all of which can be explained by data. He stated, “Home sellers are hesitant to sell as the thought of moving and logistics of that process may feel daunting during a pandemic. The majority of sellers have enough equity to not feel pressured about what will happen with the market if there is a shift in the near future. Homebuyers, on the other hand, may be spending a great deal more time at home and realizing they want more space, while also looking to take advantage of the low interest rates.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market Report” (properties sold between $300,000 and $499,999). In September 2020, 336 homes sold and closed for $1 million or greater, down 10.64 percent month over month and up 80.65 percent year over year. The closed dollar volume in the luxury segment in September was nearly $514.1 million, down 12.66 percent month over month and up 72.43 percent year over year. Year to date, the Luxury Market has 15.1 percent more sales volume than 2019.
“Sellers are falling in love with the Luxury Market in Denver!” said Brigette Modglin, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “With lower mortgage rates, more people working from home and remote learning for kids, buyers can really live anywhere these days.”
Year over year, 80.65 percent more luxury homes sold in September. According to Modglin, more homebuyers seem to be wanting single-family homes compared to condos in this price segment. Year over year, 87.2 percent more single-family homes closed. The luxury condo market is also still showing signs of strength with 31.82 percent more sold compared to 2019.
“Sellers were having to think fast and figure out their next move because the average days on market for a luxury home was down 39.47 percent year over year at 46 days and down 9.80 percent - five days less - from the previous month,” adds Modglin.
Compared to last year, new listings were up 25.84 percent in the Luxury Market while pending listings were up a whopping 116.15 percent in September. Single-family luxury homes were also hot in September with a 125.3 percent increase in pending sales compared to this time last year. The luxury condo market was just as hot with a 57.69 percent increase in pending sales going under contract from one year ago.
The highest-priced single-family home sold in September was $5.5 million, representing five bedrooms, seven bathrooms and 9,324 above ground square feet in Cherry Hills Village. The highest-priced condo sold was $2.65 million, representing four bedrooms, six bathrooms and 4,870 above ground square feet in Denver. The REALTORS® representing the buyers in both transactions are DMAR members.
Metro Denver Real Estate Market Report - SEPTEMBER 2020
SEPTEMBER 2020 - DENVER METRO REAL ESTATE MARKET
August 2020 saw the most home sales of any month of August on record, yet housing inventory hit the lowest point for any month of August on record with 40% less homes on the market than last year. Single-family homes are scarce as inventory can’t keep up with buyer demand; which drove up the average single-family home price to a new record high reaching $606,330.
August 2020 saw the most home sales of any month of August on record, yet housing inventory hit the lowest point for any month of August on record with 40% less homes on the market than last year. Single-family homes are scarce as inventory can’t keep up with buyer demand; which drove up the average single-family home price to a new record high reaching $606,330.
#DMAR Market Trends
Data Source: REColorado
Metro Denver real estate posted a number of records in July even while the daily number of COVID-19 cases reached record daily levels in the U.S. Homebuyers were not slowed by the pandemic as June’s record number of pending sales converted to an all-time high in the number of closings in any one month. Nearly seven percent more properties closed in July than Denver area’s previous high in June 2017.
“We predicted the record home sales, but I don’t know anyone who predicted prices would jump up so much in one month,” stated Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®.
Pent-up demand from the COVID-19 home-showing shutdown and the continued lack of choices forced homebuyers to bid against each other. Many sellers collected multiple offers at or above asking price. That competition catapulted the single-family home price average up to a record $601,863, which is 7.68 percent higher than June and 9.92 percent higher than July 2019.
According to Schafer, the lack of housing inventory puts the advantage in the sellers’ hands in all price ranges except for condos priced above $1 million. Even though the number of closed sales of luxury condos was up 50 percent month over month, it is still the softest segment of the market and homebuyers have the upper hand in negotiating.
The number of pending home sales in the entire residential market in July was down slightly from June’s record but still 27.07 percent higher than July 2019. “This should translate into another big closing month in August,” adds Schafer.
Denver wasn’t alone in this real estate mania. Homeownership nationwide jumped to an almost 12-year high and refinance activity exploded up 122 percent year over year in mid-July. This happened despite the economy shrinking by 9.5 percent in the second quarter of the year from the previous one, and a record 70-year drop in the gross domestic product.
“While we are all wearing masks, social distancing and washing our hands to try and reduce the number of cases of COVID-19, none of those things appear to be slowing the Denver metro real estate market and it doesn’t look like you’ll see activity or prices coming down soon,” said Schafer. “It will be interesting to see if our usual fall slowdown happens this year, or at all. We will be watching.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market Report” (properties sold between $300,000 and $499,999). In July 2020, 388 homes sold and closed for $1 million or greater, up 46.97 percent month over month and 54.58 percent year over year. The closed dollar volume in the luxury segment in July was $610 million, up 57.64 percent month over month and 62.79 percent year over year.
The highest-priced single-family home that sold in July was $5,985,000, representing five bedrooms, nine bathrooms and 9,720 above ground square feet in Cherry Hills Village. The highest-priced condo sale was $2,650,000 representing four bedrooms, seven bathrooms and 5,263 above ground square feet in Denver. The REALTORS® representing the buyers and sellers in both transactions are DMAR members.
“Throughout July, the market did not seem to slow down,” stated Andrew Abrams, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Having said that, in the luxury housing market, there were two different perspectives depending on if you had single-family or condo homes.”
The single-family Luxury Market, homes priced $1 million or greater, had one of its strongest months in almost every statistical category and July 2020 was completely different from July 2019. There was a 53.45 percent increase in new listings compared to last year. The number of pending transactions jumped 104.62 percent from 195 last year to 399 this year. The amount of closed deals in July increased 61.06 percent and both the median and average days in MLS decreased from the previous year. “Clearly, the single-family luxury market in July was trying to make up for lost time from the economic shutdown this past spring,” commented Abrams.
While the luxury condo market had a relatively strong month compared to that of the previous year, it is clear that the demand for condos was not nearly as strong as the demand for single-family homes. According to Abrams, people have spent more time in their homes than they are accustomed to and there is a growing trend of wanting more space, not just in terms of a house but a yard as well. This is reflected in a few key categories. The number of new listings for luxury condos more than doubled from the previous year, jumping from 33 new listings last year to 68 in July. While pending sales did increase 66.67 percent, that is not a higher number than the number of new listings, indicating that supply is finally starting to outpace demand in this price segment. Furthermore, the number of luxury condo sales went down from the previous year.
“The difference between the single-family homes and condos in the luxury market certainly makes sense considering the current situation,” he adds. “While being more isolated and having less activities to do, people generally want more space.” The months of inventory for luxury single-family homes indicates a seller’s market at 2.56 months of inventory; while the luxury condo segment is a buyer’s market with 6.62 months of inventory. “Until we have a solution for COVID-19, I can see these trends continuing,” Abrams stated.
Metro Denver Real Estate Market Report - AUGUST 2020
AUGUST 2020 - DENVER METRO REAL ESTATE MARKET
Homebuyers in metro Denver were not slowed by the pandemic in July as June’s record number of pending sales converted to an all-time high in the number of closings in any month on record, and the average single-family home price catapulted to over $600,000.
Homebuyers in metro Denver were not slowed by the pandemic in July as June’s record number of pending sales converted to an all-time high in the number of closings in any month on record, and the average single-family home price catapulted to over $600,000.
#DMAR Market Trends
Data Source: REColorado
Metro Denver real estate posted a number of records in July even while the daily number of COVID-19 cases reached record daily levels in the U.S. Homebuyers were not slowed by the pandemic as June’s record number of pending sales converted to an all-time high in the number of closings in any one month. Nearly seven percent more properties closed in July than Denver area’s previous high in June 2017.
“We predicted the record home sales, but I don’t know anyone who predicted prices would jump up so much in one month,” stated Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®.
Pent-up demand from the COVID-19 home-showing shutdown and the continued lack of choices forced homebuyers to bid against each other. Many sellers collected multiple offers at or above asking price. That competition catapulted the single-family home price average up to a record $601,863, which is 7.68 percent higher than June and 9.92 percent higher than July 2019.
According to Schafer, the lack of housing inventory puts the advantage in the sellers’ hands in all price ranges except for condos priced above $1 million. Even though the number of closed sales of luxury condos was up 50 percent month over month, it is still the softest segment of the market and homebuyers have the upper hand in negotiating.
The number of pending home sales in the entire residential market in July was down slightly from June’s record but still 27.07 percent higher than July 2019. “This should translate into another big closing month in August,” adds Schafer.
Denver wasn’t alone in this real estate mania. Homeownership nationwide jumped to an almost 12-year high and refinance activity exploded up 122 percent year over year in mid-July. This happened despite the economy shrinking by 9.5 percent in the second quarter of the year from the previous one, and a record 70-year drop in the gross domestic product.
“While we are all wearing masks, social distancing and washing our hands to try and reduce the number of cases of COVID-19, none of those things appear to be slowing the Denver metro real estate market and it doesn’t look like you’ll see activity or prices coming down soon,” said Schafer. “It will be interesting to see if our usual fall slowdown happens this year, or at all. We will be watching.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market Report” (properties sold between $300,000 and $499,999). In July 2020, 388 homes sold and closed for $1 million or greater, up 46.97 percent month over month and 54.58 percent year over year. The closed dollar volume in the luxury segment in July was $610 million, up 57.64 percent month over month and 62.79 percent year over year.
The highest-priced single-family home that sold in July was $5,985,000, representing five bedrooms, nine bathrooms and 9,720 above ground square feet in Cherry Hills Village. The highest-priced condo sale was $2,650,000 representing four bedrooms, seven bathrooms and 5,263 above ground square feet in Denver. The REALTORS® representing the buyers and sellers in both transactions are DMAR members.
“Throughout July, the market did not seem to slow down,” stated Andrew Abrams, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Having said that, in the luxury housing market, there were two different perspectives depending on if you had single-family or condo homes.”
The single-family Luxury Market, homes priced $1 million or greater, had one of its strongest months in almost every statistical category and July 2020 was completely different from July 2019. There was a 53.45 percent increase in new listings compared to last year. The number of pending transactions jumped 104.62 percent from 195 last year to 399 this year. The amount of closed deals in July increased 61.06 percent and both the median and average days in MLS decreased from the previous year. “Clearly, the single-family luxury market in July was trying to make up for lost time from the economic shutdown this past spring,” commented Abrams.
While the luxury condo market had a relatively strong month compared to that of the previous year, it is clear that the demand for condos was not nearly as strong as the demand for single-family homes. According to Abrams, people have spent more time in their homes than they are accustomed to and there is a growing trend of wanting more space, not just in terms of a house but a yard as well. This is reflected in a few key categories. The number of new listings for luxury condos more than doubled from the previous year, jumping from 33 new listings last year to 68 in July. While pending sales did increase 66.67 percent, that is not a higher number than the number of new listings, indicating that supply is finally starting to outpace demand in this price segment. Furthermore, the number of luxury condo sales went down from the previous year.
“The difference between the single-family homes and condos in the luxury market certainly makes sense considering the current situation,” he adds. “While being more isolated and having less activities to do, people generally want more space.” The months of inventory for luxury single-family homes indicates a seller’s market at 2.56 months of inventory; while the luxury condo segment is a buyer’s market with 6.62 months of inventory. “Until we have a solution for COVID-19, I can see these trends continuing,” Abrams stated.
Metro Denver Real Estate Market Report - JULY 2020
JULY 2020 - DENVER METRO REAL ESTATE MARKET
Record number of Denver-area homes on the market went under contract in June and home prices are on the rise. The market is experiencing near record-low housing inventory making for a strong seller’s market.
Record number of Denver-area homes on the market went under contract in June and home prices are on the rise. The market is experiencing near record-low housing inventory making for a strong seller’s market.
#DMAR Market Trends
Data Source: REColorado
In June, a record number of homes, 7,676, shifted into a pending sale status, up 16.25 percent month over month and 27.38 percent year over year.
Furthermore, weekly home closings were back above 2019 levels, ending 11-weeks of a COVID-19 induced housing slump. The DMAR Market Trends Committee estimates the Denver market missed out on the potential sale of 4,400 homes during that 11-week period.
“Remember how fast toilet paper and personal protective equipment was selling when the coronavirus first hit the country a few months ago?” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Apparently everyone stocked up on those necessary items because, in June, they turned to buying houses with the same level of frenzy. We are seeing increased demand, few choices, record-low mortgage rates and rising prices.”
In March, pre-COVID-19, the average price for a residential property in the 11-county metro Denver area 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.
“Why are home prices going up? Just like toilet paper, it’s all about supply and demand,” comments Schafer.
In June, 7,364 new properties were put up for sale, but demand was even higher. More homes were put under contract than came on the market for sale. And since there was not a lot of housing inventory at the end of May, the market was left with even less inventory at the end of June, down 11 percent month over month and 33 percent year over year. In fact, June had 6,383 listings at month’s end, which was nearing the record-low number for that month at 6,197 in June 2015. Less inventory means home sellers had more power. The only segment of the market in which homebuyers had the edge were condos priced over $1 million.
With masks, gloves and limited home showing time slots, real estate agents managed to write a record number of accepted contracts and closed 57.3 percent more homes in June compared to the month prior without doing open houses. According to Schafer, “You may be seeing those familiar arrow signs popping up again. This week’s eighth amendment to Colorado’s public health order loosened the rules for open houses but it isn’t going to be easy. Under the new rules, gloves, masks, a social distancing calculator, log sheet and an Occupational Safety and Health Administration approved ventilation system are just some of the things required. Once real estate agents review all of the new rules, they may decide to keep their open house signs in storage.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market Report” (properties sold between $300,000 and $499,999). In June 2020, 245 homes sold and closed for $1 million or greater, up 99.19 percent month over month but down 6.84 percent year over year. The closed dollar volume in the luxury segment in June was $360 million, up 92.29 percent from May but down 9.4 percent year over year.
The highest-priced single-family home that sold in May was $4,800,000, representing six bedrooms, nine bathrooms and 10,666 above ground square feet in Cherry Hills Village. The highest-priced condo sale was $2,535,000 representing four bedrooms, five bathrooms and 4,587 above ground square feet in Denver. The Realtors® representing the buyers and sellers in both transactions are DMAR members.
“The Luxury Market is coming back,” stated Taylor Wilson member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “After the halt we saw earlier this year as a result of showing restrictions and consumer uncertainty, things are picking back up.”
The number of homes sold in the single-family luxury segment was up 100 percent in June to 230 from 115 in May, and up to 15 from eight for luxury condos, an 87.5 percent increase month over month. New listings were up 17.14 percent year over year. At the end of June, there were 413 pending sales, up 38.13 percent from last month and an impressive 58.85 percent from last year. Year to date, Luxury Market listings were up 1.76 percent over last year.
“Unfortunately, the news takes a turn for the worse from there,” adds Wilson. “We have seen double-digit growth in new listings in the Luxury Market since 2016, so under two percent growth is a shocking figure that depicts the true damage stemming from COVID-19. This is also the first time since 2016 we have seen an increase in the median days on market year to date for this price segment, up 15 percent to 23 days from 20.”
Year to date, the number of Luxury Market sales has not caught up to the same levels as this time last year. Single-family and condo luxury home sales were down 13.38 percent and 28.36 percent respectively from this time last year. The total number of luxury homes sold year to date was down 15.08 percent.
“Overall, what we are seeing is impressive growth on month-to-month statistics, but shocking declines in year-to-date figures,” said Wilson. “These figures probably don’t surprise any of us given the past few months, but the next few months will be very telling. Is it possible that we are experiencing the spring selling market that we should have had a few months ago?”
According to Wilson, the Luxury Market is still a seller’s market. Luxury single-family homes have a median of 20 days on market year to date and 4.36 months of inventory. Luxury condos regularly sit on the market longer and currently have a median of 48 days on market and 9.81 months of inventory; however, the condo market represents a significantly smaller portion of this price segment than single-family homes so those numbers still don't push the segment into a buyer’s market.
Metro Denver Real Estate Market Report - JUNE 2020
JUNE 2020 - DENVER METRO REAL ESTATE MARKET
While the number of homes sold was down significantly in May, new listings and homes under contract surged.
While the number of homes sold was down significantly in May, new listings and homes under contract surged.
#DMAR Market Trends
Data Source: REColorado
As stay-at-home restrictions stemming from the coronavirus loosened on May 9 and businesses began phased openings in May, metro Denver had a surge of new listings hit the housing market, up 56.44 percent month over month to reach 7,312. Despite only 3,152 homes sold in May, down 19.71 percent month over month and 48.86 percent year over year, homes under contract increased a substantial 114.86 percent from the previous month.
“We are living in an unprecedented time with safer-at-home orders to curtail the spread of the novel coronavirus and a nighttime curfew to diminish protests downtown,” stated Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “It might seem like searching for a new home isn’t important, but no matter what else is going on in our world, there are still people who need to sell and people who need to buy. When the Denver metro area started opening up in May, those people, along with homebuyers who wanted to capitalize on record-low interest rates, generated a massive increase in the number of pending home contracts. While the infection rate curve flattened, the number of pending offers skyrocketed.”
According to Schafer, some of the surge in new listings can be attributed to sellers putting their homes back on the market after withdrawing them when showings were halted back in March.
There were 7,170 active listings at the end of May, 4.6 percent more than April but 19.36 percent less than the previous year when there were 8,891. 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 luxury home inventory and an abundance of condos for sale, with more than 25 months of inventory. Anything over six months is considered a buyer’s market.
As expected, the number of sold homes was down in May following the weeks of strict home-showing restrictions, dropping 19.71 percent month over month and 48.86 percent year over year. The average sold price of a home dropped slightly, back below $500,000 to $495,925. That was 1.24 percent lower than April but 2.43 percent higher year to date.
“The Memorial Day weekend is historically a slower time for real estate sales but the boost in homebuyer activity kept real estate agents busy this past holiday,” said Schafer. “Does this mean our market has recovered from COVID-19? Not quite yet, but it appears we are well on our way.” According to Schafer, low interest rates, renewed optimism and an increasing number of new choices are positively impacting the Denver-area housing market. She adds, “We are all hoping the virus and the violence stops soon. Will the downtown protests impact sales in that area? We have to wait and see.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). In May 2020, 115 homes sold and closed for $1 million or greater, down 28.57 percent from April and 59.22 percent year over year. The closed dollar volume in the luxury segment in May was $174.4 million, down 24.43 percent from April and nearly 60 percent year over year.
“Times of uncertainty and volatility translate into real estate through many different lenses,” stated Andrew Abrams, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “At times, it can be difficult to remember the difference of how you are living, feeling and transacting today relative to a month ago. In residential real estate, this is exacerbated as the time it takes to close on a property normally does not reflect the market at the time of closing. This is why there is relative volatility in the stats depending on which lens you look through.”
In May, there were 569 new listings priced over $1 million on the market. That is up 116.35 percent compared to the previous month and up 16.6 percent from last year at this time. Pending contracts were notably up somewhat proportional to the active listings, up 145.6 percent compared to last month and up 8.87 percent compared to last year. This shows that supply and demand were staying relative to each other. Having said that, the number of homes sold last month was down drastically; reflecting that two months ago, demand had decreased substantially.
“The year-to-date data reflects two markets: pre-COVID-19 and COVID-19,” adds Abrams. There were 1,899 new listings year to date, which is consistent with last year. The last few months were slower stemming from the pandemic which reflects how hot the metro-Denver real estate market was at the beginning of the year. There have been 755 closed properties in the over $1 million price segment through May. Notably, the close price has decreased to 96.97 percent of the list price - reflecting the lowest ratio since 2016.
The highest-priced single-family home that sold in May was $4,500,000, representing six bedrooms, 10 bathrooms and 14,106 above ground square feet in Cherry Hills Village. The highest-priced condo sale was $1,800,000 representing three bedrooms, six bathrooms and 5,646 above ground square feet in Denver. The REALTORS® representing the buyers and sellers in both transactions are DMAR members.
Metro Denver Real Estate Market Report - MAY 2020
MAY 2020 - DENVER METRO REAL ESTATE MARKET
Metro Denver’s housing market saw major decline with home showings dropping to a record low mid-April due to the Stay-at-Home order. With restrictions lifted to Safer-at-Home on April 27, approximately 3,500 showings were scheduled that day, more than any other Monday in 2020.
Metro Denver’s housing market saw major decline with home showings dropping to a record low mid-April due to the Stay-at-Home order. With restrictions lifted to Safer-at-Home on April 27, approximately 3,500 showings were scheduled that day, more than any other Monday in 2020.
#DMAR Market Trends
Data Source: REColorado
Impacts of the coronavirus on the Metro-Denver housing market were evident in April with new listings, homes under contract and home sales significantly down.
“Even with a stay-at-home order in place throughout most of April, REALTORS® proved we are an adaptable group as we found ways to help buyers and sellers who needed to buy or sell homes,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “With virtual showings, masks, booties, hand sanitizer and determination to help clients, 3,280 homes were put under contract and 4,679 listings came onto the market. That’s impressive considering the restrictions and uncertainty in our world – but COVID-19 did make an impact.”
By the numbers, in April there were 4,679 new listings on the market, down 29.81 percent month over month and 37.82 percent from the same month last year. At month’s end, 3,280 homes were under contract, down 29 percent month over month and 45.79 percent year over year. The number of homes sold, at 3,603, was down 24.34 percent month over month and 30.78 percent year over year. Total sales volume in April was $1.8 billion, down 25.69 percent over March and 29.73 percent year over year.
“COVID-19 was likely to blame for much of the home sellers’ hesitation, either because of fears of allowing people to tour their homes and possibly expose them to this insipid virus or because they knew they would have fewer showings,” added Schafer.
On March 9, home showings in the Denver area started dropping from a 2020 high, according to ShowingTime, to a low on Saturday, April 18. As the market adapted, home showings started to increase. Colorado’s stay-at-home order switched to a safer-at-home plan on April 27 and on that day approximately 3,500 showings were scheduled, more than any other Monday in 2020. The number of showings have continued to increase every day since.
Despite fewer new listings, the slowdown caused a build-up in the number of active listings at month’s end, up from 5,776 in the previous month to 6,855 at the end of April. That’s an 18.68 percent increase month over month but 2.24 percent less than April 2019. For comparison, the number of active listings at the same time in 2019 was 7,012 and in 2016, 2017 and 2018 it was in the low five thousands.
Even with the increase in active listings at month’s end, the 11-county metro area was still a seller’s market in all price ranges except the Luxury Market. The months of inventory was the lowest in homes between $300,000 to $399,999, with less than a month available, and highest in condos priced over $1 million, with a little more than seven months of inventory.
Schafer states, “There was plenty of positive news. While many worry about the economy and their stock portfolios, Denver-area residential real estate remains a good investment.” The close-price average was down only 1.79 percent at $503,231 from the record in March of $512,386, but that’s still up 1.52 percent year over year and up 3.99 percent year to date. The median close price was up 6.10 percent year to date.
Also according to Schafer, homebuyers realized this wasn’t a time for low-ball offers, big discounts or taking their time to make an offer. Home sellers received an average of 99.96 percent of their list price in April and sold their homes in an average of 20 days compared to 30 last month and 29 days in April of 2019.
“Things have definitely changed, but we’ve adapted,” adds Schafer. “Will the looser restrictions in May cause a flood of new listings from sellers who withdrew their homes or were holding back? Maybe, but there was an 11.6 percent increase in mortgage purchase applications nationally. It’s likely we will continue to see real estate transacted with REALTORS® and their buyers wearing masks and booties and sellers sanitizing after every showing. We are all in this together and it’s important we follow proper showing protocol while still doing our jobs because it’s evident there continues to be a need to buy and sell homes.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). In April 2020, 149 homes sold and closed for $1 million or greater, down 33.18 percent from March and 40.64 percent year over year. The closed dollar volume in the luxury segment in April was $214 billion, down 38.21 percent from March and 46.95 percent year over year.
The highest-priced single-family home that sold in April was $3,275,000, representing five bedrooms, six bathrooms and 4,874 above ground square feet in Denver. The highest-priced condo sale was $3,300,000 representing three bedrooms, four bathrooms and 3,357 above ground square feet in Denver. The REALTORS® representing the buyers and sellers in both transactions are DMAR members.
“The Luxury Market is starting to feel the blow from COVID-19,” said Libby Levinson, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Lenders have tightened the requirements for obtaining jumbo loans, the stock market is in flux, the oil industry has seen huge price drops and some of the larger banks have halted cash-out refinance applications. So, how will this all impact the Denver luxury real estate market? Thankfully, the Luxury Market had a strong start for the year.”
Year-to-date through April, there was $875.4 million in single-family home sales, down 3.76 percent year over year. Year-to-date condo sales were down 13.35 percent in April to $107.5 million, compared to $124 million year over year.
In the luxury segment, 132 single-family homes closed, down from 197 month over month and 219 year over year, which is a drop of 33 percent and 39.73 percent respectively. The sales volume dropped 39.04 percent from $308.2 million to $187.9 million month over month. Speaking to the strong start to 2020, year over year, 575 single-family homes have sold year to date, which is just shy of the 581 homes sold in 2019.
The luxury condo segment reflected 17 sold homes, down from 26 the prior month, which resulted in a drop of 34.62 percent month over month and 46.88 percent from this time last year when 32 properties sold. The sold volume dropped 31.51 percent month over month from $38.3 million to $26.2 million in April. This is a 46.53 percent difference from this time last year with over $49 million in sold volume. The luxury condo segment also had a great start to the year with 72 homes sold year to date in 2020, just slightly down from 73 units sold in 2019.
“As we move towards safer-at-home protocols and increasing guidelines for showings, the value of a REALTOR® is becoming even more important,” added Levinson. “We will have to work harder to get our listings in front of potential buyers. On the listing side, we will have to do the extra leg work for our home sellers to pre-screen potential buyers and verify real estate agents are adhering to showing protocols.”
Metro Denver Real Estate Market Report - APRIL 2020
APRIL 2020 - DENVER METRO REAL ESTATE MARKET
Metro Denver’s real estate market started as one of the strongest on record in March but ended with a stark shift stemming from the coronavirus pandemic and ensuing stay-at-home order.
Metro Denver’s real estate market started as one of the strongest on record in March but ended with a stark shift stemming from the coronavirus pandemic and ensuing stay-at-home order.
#DMAR Market Trends
Data Source: REColorado
There were an unprecedented 761 home sellers that withdrew their homes from the metro-Denver real estate market in March. The largest number of homes, 625, were removed in the last two weeks of March amid fears stemming from the coronavirus pandemic.
For comparison, 284 homes were withdrawn in January 2020. For historic perspective, March 2003 had 477 homes withdrawn and this was at a time when there were 23,967 active listings. March 2020 ended with 5,776 active listings.
According to Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®, home sellers withdrew homes possibly from fears of contaminated homebuyers walking through their homes, or concerns about their jobs and the economy.
“How quickly our world has changed,” said Schafer. “At the start of March, the Denver Metro real estate spring market was showing signs of being one of our best on record. By the end of the month, we were all wondering what was ahead for us, our industry and our country.”
Following the “Stay-at-Home” executive order by Colorado Governor Jared Polis, on March 26 ‘real estate’ was classified as a ‘critical business.’
“There are people out there who need to buy a home and others who need to sell, so we continue to work. But the way we do our jobs has changed,” stated Schafer. “We are no longer holding open houses, driving with our clients or even riding in the same elevator. We are completing transactions at no-contact, curbside closings with closers wearing gloves and masks. We have a new contract, called the COVID-19 Addendum, that allows a transaction to be extended in the case a homebuyer or seller is exposed or quarantined, as well as new CDC regulations to follow when listing and showing homes. Virtual tours, videos and FaceTime walk-throughs have become the preferred form of marketing so buyers don’t have to enter properties unless they truly think it might be the one they want to buy.”
While transacting real estate is different, it is still being transacted. In March, 30.24 percent more new listings came on the market, which pushed the number of active listings at month’s end up 19.46 percent to 5,776. “While more inventory is what we’ve been needing, it may also spark anxiety that we are on our way back to the huge excess inventory days of the last recession,” Schafer shares. Notably, that is 8.20 percent fewer active listings than the same month last year and all price ranges are still in a seller’s market.
The number of pending contracts increased 8.03 percent month over month, and there were 12.02 percent more homes sold. Houses were selling 23.68 percent faster, in an average of 29 days, compared to 38 in the prior month.
The average close price for all single-family homes and condos was $513,526 – setting a new record high and the first time the average close price for both segments topped the half-million-dollar mark. “On the surface, it seems like a big jump as it represents the first time we've been over the $500,000 threshold for single-family homes and condos,” stated Steve Danyliw, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Last March we closed the most single-family homes in the $300,000 to $399,000 range. This March, the highest number of sales were in the $500,000 to $749,000 range. This could demonstrate that this spring's market was shaping up to be a scorcher.”
DMAR’s monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). In March 2020, 202 homes sold and closed for $1 million or greater, up 30.32 percent from February and 13.48 percent year over year. The closed dollar volume in the luxury segment in March was $318.6 billion, up 34.36 percent from February and 15.17 percent year over year.
The highest-priced single-family home that sold in March was $4,297,000, representing six bedrooms, 11 bathrooms and 10,614 above ground square feet in Cherry Hills Village. The highest-priced condo sale was $2,775,000 representing three bedrooms, four bathrooms and 3,120 above ground square feet in Denver. The REALTORS® representing the buyers and sellers in both transactions are DMAR members.
Single-family homes in the luxury segment were on the market for a median of 29 days year to date; this is significantly down from 61 days compared to 2017 and 68 days in 2016. The year-to-date median price was $1.3 million, with the average at $1,562,227. Notably and potentially an upcoming trend, the close-price-to-list price ratio dropped 0.61 percent year to date.
Luxury condos saw the reverse shift with median days on market increasing to 73 days year to date, up from 63 days last year, 45 days from 2017, and 14 days from 2016. Interestingly, the year-to-date median price point for luxury condos is exactly the same as luxury single-family homes at $1.3 million, with the average at $1,476,724. The close-price-to-list-price ratio also dropped 0.35 percent year to date.
“Due to the stock market volatility, it is presumed that the Luxury Market will see the largest impact as confidence wavers,” states Libby Levinson, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “The number of withdrawn and back-on-market properties has been staggering. However, with the roll out of an economic rescue package, the stock market has reacted well. Additionally, with the Paycheck Protection Program, this will help small business owners get back on their feet, which may just provide more movement in the Luxury Market.”
More insights from the Special COVID-19 Edition of the DMAR Denver Metro Real Estate Market Trends Report:
In the Signature Market (homes between $750,000 and $999,999), there were more homes that sold from the start of the year through March than any of the previous five years. With 637 closing in this price segment, there was an increase of 19 percent or 102 more home sales. These stats reflect the environment pre-COVID-19 where homebuyer demand was incredibly high.
In the Premier Market (homes between $500,000 and $749,999) in March, the number of homes sold increased by 22.37 percent year over year. The average and median days on market dropped 15.38 percent year over year to 33 days and 42.86 percent to eight days, respectively. However, 226 listings were withdrawn, of which 82 percent were withdrawn the second half of the month.
In the Classic Market (homes between $300,000 and $499,999), March ended with less than a month’s supply of homes. With such tight inventory, this price segment, and anything priced below $300,000, will likely be the least impacted by COVID-19.
There was a big difference in foot traffic from the beginning of the month to the end. According to ShowingTime data from the seven-county metro area, gathered by Megan Aller with First American Title, the number of March showings peaked between the 4th and the 10th of March. Following the “Stay-at-Home” order, showings fell 50.4 percent from that peak week to the last week of the month. The good news for home sellers is that the buyers who were looking, were serious as it took 30.7 percent fewer showings to produce a contract in the last week of March than it did the week prior.
REcolorado has temporarily disabled the ability to enter open houses. DMAR’s Chairman of the Board, Euan Graham, has asked agents to suspend open houses at this time.
The National Association of REALTORS® sent a letter to Congress urging lawmakers to include policy in coronavirus response legislation that would pave the way for remote notarizations nationally and make it easier to complete transactions virtually. The Securing and Enabling Commerce Using Remote and Electronic Notarization Act of 2020, also known as the SECURE Notarization Act, was introduced March 24, 2020 and has already garnered broad support across the real estate industry.
Many states have already enabled the use of “RON” Remote Online Notarization. On March 30, 2020, Colorado temporarily adopted Rule 5 and is now allowing for remote online notarizing per the amended rule 8 CCR 1505-11.
Interest rates continue to stay volatile as mortgage lenders struggle with demand and servicers struggle with requirements to pay investors, property taxes, homeowners’ insurance and mortgage insurance without receiving mortgage payments from homeowners.
The Director of the Federal Housing Finance Agency estimates there will be two million loans in forbearance by the end of May.
Forbearance is not forgiveness. The COVID Stimulus Package allows up to a 180-day forbearance with a 180-day extension. Most servicers are offering 90 days to start. Forbearance requires repayment at the end of the forbearance period.
GDP for 2020 Q1 is estimated to come in at -2.5 percent. GDP for 2020 Q2 is currently estimated to be -18.3 percent year over year.
Several iBuyers have suspended their services in light of the coronavirus outbreak. Opendoor, the largest iBuyer in the U.S., as well as brokerages with iBuying arms, announced they are holding off on instant offers while the nation responds to the pandemic.
Metro Denver Real Estate Market Report - MARCH 2020
MARCH 2020 - DENVER METRO REAL ESTATE MARKET
Denver-area homebuyers and sellers ‘leaped’ into action in February with median days on market at 12, increases in both the number of homes sold and prices and new listings up but active listings down.
Denver-area homebuyers and sellers ‘leaped’ into action in February with median days on market at 12, increases in both the number of homes sold and prices and new listings up but active listings down.
#DMAR Market Trends
Data Source: REColorado
In February, 5,122 new listings came on the market, up 5.56 percent from the month prior which saw a massive month-over-month increase. Home sales were up 3.16 percent in February so the month ended with only 4,835 active listings, down 2.15 percent from January and 19.64 year over year.
“While the stock market struggled with fears of the spreading coronavirus, real estate stayed strong,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Homebuyers and sellers leaped into action and took full advantage of the extra day in February. Despite being one of our snowiest Februarys on record, real estate agents put more homes on the market, up 5.56 percent from the prior month. We shifted 7.08 percent more homes into a pending status and closed 3.16 percent more deals than in January.”
Not everything was rosy in the month of love according to Schafer. She says a major concern was the continuing drop in the number of active listings at month end and adds, “New listings moved into pending status faster than presidential candidates dropped out. The talk between agents sounds like more multiple-offer situations were occurring than a few months ago. Fewer homes to choose from pushes prices up in a community that already has an affordability issue so now is the time to get homes listed and on the market.”
The low months of inventory mean sellers have the advantage in all price segments except for the Luxury Market. Homes priced above $1 million had higher months of inventory, indicating homebuyers may have a little more power in negotiations on high-end homes in some areas.
Notably, the median days on market in the entire residential market dropped 55.56 percent to 12 days in February from 27 in January. The average closed price of a single-family home came in at $544,054, up 2.51 percent month over month. The median year-to-date close price was $465,000, an increase of 8.14 percent compared to 2019.
Our monthly report also includes statistics and analyses in its supplemental Luxury Market Report (properties sold for $1 million or greater), Signature Market Report (properties sold between $750,000 and $999,999), Premier Market Report (properties sold between $500,000 and $749,999) and Classic Market (properties sold between $300,000 and $499,999). In February 2020, 141 homes sold and closed for $1 million or greater, up 18.49 percent from January and 8.46 percent year over year. The closed dollar volume in the luxury segment in February was $215.45 billion, up 17.6 percent from January and 8.18 percent year over year.
The highest-priced single-family home that sold in February was $6,620,000, representing eight bedrooms, 13 bathrooms and 12,957 above ground square feet in Cherry Hills Village. The REALTORS® representing the buyer and seller are DMAR members. The highest-priced condo sale was $2,770,000 representing two bedrooms, three bathrooms and 2,546 above ground square feet in Lower Downtown Denver. The REALTORS® representing the buyer are DMAR members.
“Housing data indicates February was a great month for luxury real estate in Denver,” stated Jenny Usaj, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “This year, 260 homes priced $1 million or greater have already sold year to date, up 15.56 percent compared to 2019. The luxury market is off to an aggressive start in 2020.”
Last month, the luxury single-family market alone closed on 126 homes, up 20 percent month over month and 7.69 percent from last year. “There are more buyers ready to purchase a home priced over $1 million than we saw in 2019. Single-family sellers are enjoying a more crowded marketplace. That said, these new homeowners are still able to negotiate the sale. The reported close-price-to-list-price ratio shows that homes are selling at 96.63 percent of the asking price. This is noteworthy as homebuyers in lower price points are competing with multiple offers.”
The condo market is also up in the number of closed homes in February which experienced a 7.14 percent increase from the prior month and 15.38 percent year over year.
Overall, luxury listings are staying on the market less time than last month as reflected in a decrease in both the median and average days in the MLS, at 47 and 76 days respectively. Usaj comments, “Days on market for luxury homes is another indicator that the market is moving faster in this price band. Homebuyers are out looking at homes and making decisions quickly despite the snowfall we saw last month.”
Metro Denver Real Estate Market Report - FEBRUARY 2020
FEBRUARY 2020 - DENVER METRO REAL ESTATE MARKET
2020 kicks off briskly for the Denver-area real estate market due to more housing inventory, continued low interest rates, above-average January temperatures and no postseason Broncos game according to the Denver Metro Association of REALTORS®.
2020 kicks off briskly for the Denver-area real estate market due to more housing inventory, continued low interest rates, above-average January temperatures and no postseason Broncos game according to the Denver Metro Association of REALTORS®.
#DMAR Market Trends
Data Source: REColorado
In January, 4,853 new listings came on the market, a massive 89.27 percent increase from the month prior. However, the month ended with 4,941 active listings, a 1.91 percent drop from December, because homebuyers placed 43 percent more homes in pending status month over month which diminished the housing inventory surplus.
“The real estate market is off to a brisk start in 2020,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “I’ve always told my December buyers not to get discouraged by a lack of choices; just like Colorado’s oft-changing weather, if they just hang in there, it will change. We historically get a big influx in January and, this year, homebuyers apparently liked what they saw because they were scooping them up faster than they were coming on the market. In fact, 70 more homes shifted to a pending status than showed up as new listings, nibbling away at our end of month active inventory surplus.”
Continued low mortgage interest rates, 18 days above the average temperatures in January, and no postseason Denver Broncos games were some of the reasons the Denver-area housing market heated up early according to Schafer. She adds, “I feel like the Denver Metro real estate market kicks into high gear following the Bronco’s last game each season.”
In the entire residential market, there was a 34.21 percent drop in the number of closed homes and 35.19 percent drop in sales volume month over month in January which was a reflection of the slower 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.
The average single-family home price was down from its summer highs, but higher year over year by 6.86 percent to $532,494. The picture is a little different for condos that experienced a 4.98 percent month-over-month drop in average price to $355,754, which is also down 0.37 percent from the same month last year; representing the first price drop in the month of January in at least the past four years.
The bulk of single-family homes for sale at the end of the month was in the $500,000 to $749,999 Premier Market price range. The most choices for condos could be found in the $300,000 to $399,999 range. Buyers will find the most opportunity to negotiate for both single-family homes and condos over $1 million where the months of inventory were at 6.92 and 8.50, respectively; home sellers were in control of negotiations in all other price ranges.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). In January 2020, 107 homes sold and closed for $1 million or greater, down 45.96 percent from December but up 12.63 percent year over year. The closed dollar volume in the luxury segment in January was $161.5 million, down 46.31 percent from December but up 4.7 percent year over year
The highest-priced single-family home that sold in January was $7.4 million, representing four bedrooms, six bathrooms and 6,122 above ground square feet in Boulder. The highest-priced condo sale in January was $2 million representing three bedrooms, three bathrooms and 3,245 above ground square feet in Greenwood Village. The REALTOR® representing the buyer is a DMAR member.
In the Luxury Market, the months of housing inventory increased to 6.92 months for single-family homes and 8.5 months for condos, up 40.63 percent and 68.42 percent month over month respectively. “Homebuyers are jumping for joy in the Luxury Market because they are not having to compete as much as other price segments of the Denver-area housing market,” stated Brigette Modglin, member of the DMAR Market Trends Committee and Metro Denver REALTOR®.
Year over year in January, 11.76 percent more single-family homes closed and 20 percent more condos closed in the Luxury Market. The number of homes that closed in the entire residential Luxury Market was up 12.63 percent and total sales volume was up 4.7 percent from one year ago. However, the number of homes closed in the entire luxury residential market was down 45.96 percent and sales volume was down 46.31 percent month over month. “Luxury residential sales volume didn’t soar as much we would have hoped,” comments Modglin.
Metro Denver Real Estate Market Report - JANUARY 2020
JANUARY 2020 - DENVER METRO REAL ESTATE MARKET
Housing conditions in 2019, including scarce inventory and record-breaking prices, position metro Denver as a seller’s market going into the new year.
Housing conditions in 2019, including scarce inventory and record-breaking prices, position metro Denver as a seller’s market going into the new year.
#DMAR Market Trends
Data Source: REColorado
This 2019 year-end report analyzes trends that indicate 2020 has started off as a seller’s market.
“Inventory continued to be scarce in 2019,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. 2019 ended with 5,037 active listings, down 9.68 percent from 2018; representing 41 percent of metro Denver’s 30-year annual average of 12,262 active listings.
For historical perspective, active listings reached their highest point in July 2006 with 31,989 listings. During that period of record highs, months of inventory stood at 6.6 months which implied a robust homebuyer’s market. The record-low month was in December 2017 with 3,854 listings. A year later, that number increased 44.7 percent to 5,577. This growth in housing inventory was due in part to sluggish sales and a higher number of new listings entering the market. According to the numbers, this trend started to reverse itself toward the midpoint of 2019 with November representing the first month in the previous 13 that showed a decrease in listings compared to the previous year.
“The Denver metro area saw a significant increase in homes for sale in 2018, up 44.71 percent from 2017,” adds Schafer. “That prompted talk of recession and fears of another housing crash. But at the end of 2019, that pile of inventory shrunk. The main reason we saw fewer choices was not because more were going under contract or selling, but because nearly 30 percent fewer new listings came on the market in December compared to the month prior.”
According to Schafer, considering the average rate of home sales, it would take only 1.13 months to sell all single-family homes and 1.37 months to sell all condos in the Denver area. She states, “For perspective, at a peak in January 2010 we had 9.8 months of attached (condo) home inventory and 8.4 months of detached (single-family) homes. Anything under four months means sellers have the power in negotiations, while more than five months means buyers have control. We have started 2020 with sellers firmly in control.”
2019 also established a new historical high and marked the eighth consecutive year of price gains. In 2019 the average home price was $486,695 and the median home price was $420,000, up 2.85 percent and 2.46 percent respectively compared to 2018.
“Despite more price reductions, home values continued to go up in 2019,” comments Schafer. “Not at 8-9 percent like we saw earlier in the 2010’s, but up nonetheless. If you take a longer look back to get more perspective, you’ll see what a fabulous investment real estate is in the Denver metro area. The average residential close price increased 87.82 percent from 2010 when it was only $259,084.”
According to DMAR, over the last 30 years the average home price in metro Denver has increased a staggering 417 percent. “Growth has been consistent since 1990 except during the mortgage market collapse from 2007-2009,” said Steve Danyliw, DMAR Market Trends Committee member and Metro Denver Realtor®. “This was the only time where year-over-year home prices dropped. The good news: our recovery has been one of the strongest in the nation. Our pre-recession high was 2006 at $288,916. Since that time, home prices have increased 68.6 percent. That increase is one of the highest price recoveries in the nation.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). In 2019, 2,421 homes sold and closed for $1 million or greater, up nearly 12 percent from 2018. The closed dollar volume in the luxury segment was $3.74 billion, up 13.46 percent compared to 2018.
The highest-priced single-family home that sold in December was the highest-priced home sale historically on record in metro Denver at $11,625,000, representing six bedrooms, 11 bathrooms and 15,473 above ground square feet in Englewood. The highest-priced condo sale in December was $2,250,000 representing four bedrooms, four bathrooms and 3,152 above ground square feet in Denver. The Realtors® representing the buyers and sellers in both transactions are DMAR members. Notably, the highest-priced condo sale in 2019 was in January at $10,750,000 representing three bedrooms, five bathrooms and 6,295 above ground square feet in Denver.
The Luxury Market was the only housing segment to see a year-over-year decrease in average and median days on market. Homes priced $1 million and up saw a decrease in average days on market from 68 in 2018 to 60 in 2019, down 11.76 percent, and has notably been decreasing since 2015 when it stood at 87 days.
“Overall, the Luxury Market has 4.06 months of inventory for single-family homes and 2.26 for condos - that’s more than any other housing price segment,” stated Taylor Wilson, DMAR Market Trends Committee member and Metro Denver REALTOR®. “That kept the list-price-to-sales-price ratio around where it has been since 2015 when it was 96.87 percent at its lowest, compared to 97.31 percent at its current and highest.”
2019 had a staggering 56.52 percent increase in the sale of luxury condos priced $1 million and over compared to the previous year, from 184 to 288. According to Wilson, “This is no doubt a result of the many infill developments of $1 million-plus duplex and multi-unit projects; however, single-family homes still make up 88 percent of the sales for homes priced over $1 million.”
Furthermore, in 2019, condos spent an average of 12 fewer days on the market compared to that of single-family homes, though the average sales prices were close.
Metro Denver Real Estate Market Report - DECEMBER 2019
DECEMBER 2019 - DENVER METRO REAL ESTATE MARKET
Fewer choices for homebuyers in Metro Denver this holiday season. Both the number of new listings and homes sold dropped month over month in November.
Fewer choices for homebuyers in Metro Denver this holiday season. Both the number of new listings and homes sold dropped month over month in November.
#DMAR Market Trends
Data Source: REColorado
The number of new listings added to the Denver-area housing inventory in November was down 32.7 percent month over month and 6.48 percent year over year. This reduction contributed to shrinking the number of active listings from 8,557 in October to 6,988 in November, an 18.34 percent drop. For comparison, in the last quarter of 2018 there was a surge in new housing inventory.
“The number of new listings was as scarce as the sweet potato casserole after the first pass around the table at Thanksgiving,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver Realtor®. “The market would have gobbled up even more of our excess inventory if we hadn’t also had fewer sales.”
Closed sales were down 22.78 percent month over month, but sales were still up by 2.17 percent year to date compared to 2018. The number of homes that went under contract dropped 10.84 percent month over month which, according to Schafer, indicates the number of homes sold will likely be down next month, too.
“Fewer homes on the market means it’s tougher for homebuyers in an already expensive city to own real estate, especially in the very popular housing segment of homes priced under $400,000,” states Schafer. “Many buyers continue to have to put in multiple offers before landing a home.”
The average days on market and the average sold price both increased in the entire residential market. The average days on market was 35 in November, up just one day from the prior month. Year to date the average days on market was at 31, an increase of 24 percent compared to last year. “This is what both buyers and sellers need to know,” adds Schafer. “While homes may be on the market longer, and the close-to-list-price ratio was down to 98.80 percent month over month and 99.23 percent year to date, this is still not a market for low-ball offers.”
The average home price in November was $490,874, up 1.43 percent month over month and 6.76 percent year over year. Breaking it down further, the average single-family home price was $537,624 and the average condo sold price was $365,856.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). In November 2019, 166 homes sold and closed for $1 million or greater – down 15.31 percent from October and up 26.72 percent year over year. The closed dollar volume in the luxury segment year to date was $3.45 billion, up 11.33 percent from last year.
The highest-priced single-family home that sold in November was $7,250,000, representing five bedrooms, 10 bathrooms and 11,860 above ground square feet in Cherry Hills Village. The highest-priced condo sale was $5,359,975 representing three bedrooms, four bathrooms and 3,518 above ground square feet in Denver. The Realtors® representing the buyers and sellers in both transactions are DMAR members.
“The highest priced condo sale in November averaged over $1.5 million per bedroom!” said Andrew Abrams, DMAR Market Trends Committee member and Metro Denver Realtor®. “However, notably, only 15 luxury condos sold which represented less than 10 percent of the total luxury sales last month.”
DMAR finds that, while inventory has decreased from the previous month, the close-price-to-list-price ratio has remained steady from both the previous month and previous year. Out of the 166 luxury properties that sold, a little more than 90 percent of them were single-family homes, which could explain why the months of inventory for single-family properties is at the high end of a balanced market with 5.45 months of inventory. Likewise, months of inventory for condos shows a buyer’s market at seven months. The average months of inventory across all price points is 2.13, showing that “the Luxury Market is on its own island.” The condo market has higher months of inventory compared to single-family properties throughout all price points. Abrams adds, “This shows that, overall, there is more demand than supply in single-family homes relative to condos.”
According to Abrams, considering the boom that metro Denver real estate has experienced in Colorado throughout the last 10 years, the amount of luxury properties sold is not surprising nor is the increase in sales volume. He comments, “I did find it surprising, however, that despite there not being a lot of condo sales last month, year to date, luxury condo sales were up 50 percent from the previous year. This could be due to more condo development.”
Metro Denver Real Estate Market Report - NOVEMBER 2019
NOVEMBER 2019 - DENVER METRO REAL ESTATE MARKET
The number of new listings added to the Denver-area housing inventory in October was down 10.14 percent month over month, but still up 4.37 percent year to date. The 5,425 homes added to the market was the lowest number of new listings in a given month since February. The average days on market year to date was at 30, up 25 percent compared to last year which was at 24 days.
The number of new listings added to the Denver-area housing inventory in October was down 10.14 percent month over month, but still up 4.37 percent year to date. The 5,425 homes added to the market was the lowest number of new listings in a given month since February. The average days on market year to date was at 30, up 25 percent compared to last year which was at 24 days.
#DMAR Market Trends
Data Source: REColorado
“We continue to see price reductions and longer days on market,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Of the closed transactions in October, 40 percent had to make a price reduction. That impacted home sellers in a big way. When sellers had to drop their price, their homes were on the market for an average of 59 days. When a home hit the market at the right price it was only on the market for 14 days.”
According to Schafer, the fewer new listings added to the market may have contributed to the decline in home sales in October, down 6.40 percent compared to September, but still 1.85 percent more year to date compared to last year.
The housing price range that saw the biggest reductions prior to an accepted contract were homes priced over $1 million where the average price reduction was $149,742. In the entire residential market, homes priced under $500,000 had average price reductions between $10,750 to $21,362. Notably, in October, the average sold price of a single-family home was $533,483, up 1.96 percent year over year, and the average sold price of a condo was $365,665, up 6.95 percent year over year.
“Overall, the numbers show there is continued demand for homes in the Denver area,” adds Schafer. “Furthermore, interest rates remained low, job numbers were still strong, foreclosures and short sales were rare and mortgage delinquency rates were some of the lowest in the country.”
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999) and “Classic Market” (properties sold between $300,000 and $499,999). In October 2019, 184 homes sold and closed for $1 million or greater – down 0.54 percent from September and up 6.36 percent year over year. The closed dollar volume in the luxury segment year to date was $3.17 billion, up 9.88 percent from last year.
The highest-priced single-family home that sold in October was $9,000,000, representing 8,373 above ground square feet in Cherry Hills Village. The highest-priced condo sale was $4,275,000 representing three bedrooms, four bathrooms and 3,466 above ground square feet in Denver. The REALTORS® representing the buyers and sellers in both transactions are DMAR members.
“It is clear the market has been slowly transitioning and the seasonal shift has begun,” stated Bryan Facendini, DMAR Market Trends Committee member and Metro Denver REALTOR®. “The market trend statistics signal it remains a good time period for buying and selling of luxury homes. In fact, year to date, 2019 is well-ahead of last year’s pace in the luxury market.”
There was a total of 2,051 luxury homes that sold year to date in October 2019 compared to 1,896 luxury homes that sold this same time last year, an increase of 8.18 percent. Luxury condo sales continued to perform well in 2019 too. The 237 condos sold year to date was an increase of 55.92 percent over last year. Year to date, single-family home sales have increased from 1,744 in 2018 to 1,814 in 2019, an increase of 4.01 percent.
Unlike the entire residential market as a whole, the Luxury Market’s days on market improved. Month over month, median days on market in the luxury segment went from 38 days in September to 28 days in October. Breaking down the numbers further, luxury condo median days on market decreased month over month by 30.77 percent from 26 days in September to 18 days in October. Median days on market for single-family homes improved by 17.5 percent year over year, from 40 days in October 2018 to 33 day in October 2019.
“Days on market in the luxury segment is a sign that homebuyers have moved quicker to make a purchase, and possibly to lock-in the low mortgage rates we’ve seen the second half of this year,” comments Facendini. “Furthermore, months of inventory for luxury single-family homes is 6.13 months, which is the equal balance point between buyers and sellers. Sellers continue to maintain an edge with condos in the Luxury Market with 4.35 months of inventory. While price reductions have become common, the year-to-date close-to-list price ratio has remained steady at 97.42 percent in 2019 in the entire luxury residential market compared to 97.35 percent in 2018.”
Further supporting this point, year to date, the single-family average sold price of $1,544,450 in 2019 was an increase of 1.35 percent over the 2018 average sold price of $1,523,883. Same holds true with luxury condos which have realized an appreciation in average sales price of 4.02 percent year to date. This time last year, price per square foot in the entire Luxury Market was $306 year to date, and has increased 9.80 percent in 2019 to $336. Year to date, single-family luxury homes bumped up from $290 per square foot in 2018 to $303 per square foot in 2019. Condo year-to-date price per square foot jumped from $487 in October 2018 to $585 in October 2019.
Metro Denver Real Estate Market Report - October 2019
OCTOBER 2019 - DENVER METRO REAL ESTATE MARKET
Homes priced between $300,000 and $499,999 have greatest buyer demand in Metro Denver. The price segments for which homebuyers have gained more negotiating power are condos priced between $750,000 and $999,999 and the single-family homes priced over $1 million.
Homes priced between $300,000 and $499,999 have greatest buyer demand in Metro Denver. The price segments for which homebuyers have gained more negotiating power are condos priced between $750,000 and $999,999 and the single-family homes priced over $1 million.
#DMAR Market Trends
Data Source: REColorado
September ended with 2.04 months of single-family home inventory and 2.12 months of condos for sale. According to DMAR, housing inventory under five months is considered a seller’s market.
“In the Denver area, the real estate season is usually busiest from March through September,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “This year, you could say we’ve been turning from an extremely fast-paced market to a slower moving, healthier one. There have been changes, but we have not shifted to a buyer’s market. Let me repeat that. We have not shifted to a buyer’s market. Sellers still hold the upper hand.”
Schafer adds, “Don’t get me wrong, we have been seeing changes. The number of price reductions has gone up. The spread between the list price and the sold price has widened. And the average days on market went up.”
The rate of housing price appreciation has slowed, but it has not reversed. Overall, while it decreased month over month, the average sold price of a home in September was still up 6.06 percent year over year and 2.52 percent year to date, $483,734 and $487,814 respectively. Year to date, the close-price to list-price ratio was at 99.31 percent in September, whereas it has been slightly over 100 percent since 2015. Furthermore, the days on market has increased 25 percent year to date from 24 days last year to 30 days.
Schafer notes that there are two segments of the housing market for which homebuyers have “a little more buying power”: condos priced between $750,000 and $999,999 and the single-family homes priced over $1 million.
On the other hand, homes priced between $300,000 and $499,999 have greatest buyer demand in Metro Denver. Andrew Abrams, DMAR Market Trends Committee member and Metro Denver REALTOR®, shares: “Months of inventory for homes priced between $300,000 and $499,999 were an astonishing 1.33 for single-family homes and 1.97 for condos. This means that if no houses hit the market in this price range, there would not be any more single-family homes to sell in 5-6 weeks and only two months for condos. This price range has the lowest months of inventory compared to all other segments of the housing market.”
Looking at the numbers, the record-high housing inventory for the month of September was in 2006 with 31,450 active listings, and 2015 represented the record low with 7,516. For comparison, September 2019 ended with 9,286 active listings.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999). In September 2019, 177 homes sold and closed for $1 million or greater – down 23.38 percent from August and up 39.37 percent year over year. The closed dollar volume in the luxury segment year to date was $2.88 billion, up 10.73 percent from last year.
The highest-priced single-family home that sold in September was $7,200,000 representing three bedrooms, five bathrooms and 5,075 above ground square feet in Boulder. The highest-priced condo sale was $2,800,000 representing two bedrooms, three bathrooms and 3,042 above ground square feet in Denver.
“Like the sizzling hot temperatures, we had in September, the Luxury Market was hot too,” stated Brigette Modglin, DMAR Market Trends Committee member and Metro Denver REALTOR®.
Sales of single-family homes were up 32.48 percent and condo sales were up 120 percent from one year ago. Modglin adds, “Even with the extremely warm temperatures we still welcomed the fall season, which is when we start to see things slow down.”
Month over month, single-family homes in the Luxury Market had price depreciations with homes selling 96.49 percent from list-price to close-price, down 0.88 percent month over month and 0.42 percent from one year ago. Slowing down too was the single-family sales volume that fell 16.47 percent month over month but was still up year over year with an increase of 45.09 percent.
“Don’t slow down too much though,” comments Modglin. “If buyers are wanting to buy a single-family luxury home, now may be the time. With over six months of inventory for homes priced $1 million plus, we’ve moved from a balanced market slightly into a buyer’s market, and home sellers may be willing to give a little more than they did a month ago and even a year ago.”
The luxury condo market was in demand with condos selling 98.11 percent close-price to list-price, up 1.12 percent month over month and up 6.56 percent year over year. Luxury condo sales were ‘scorching hot’ according to Modglin with, year over year, 12 more condos that sold over $1 million and luxury condo sales volume up 135.07 percent.
Like a hot commodity, luxury condos weren’t taking as long to sell with only 37 average days on market, which was down 28.85 percent month over month and down 57.95 percent from one year ago when it averaged 88 days to sell. Luxury condo buyers are paying $191 more per square foot this year than last year with the price-per-square foot up 52.04 percent at $558.