Denver Housing Market: The Good, The Bad, The Questions!
Three Trends in Today’s Market
- The Denver housing market has reached record levels in pricing with an average price increase of 9.2% over last July 2019.
- The 2020 listing inventory is 36% lower this year than 12 months ago. As supply decreases, demand increases as most economists will tell you.
- Closings for July 2020 were 20.7% higher than July 2019 with 6598 properties
Inventory Trends Drive Sales
- Single Family home inventory is 36% lower than July of 2019.
- Single Family homes Days on the Market is 28 .
- Average YTD price of $499,148 for 2020 is 3.8% higher than this time in 2019.
- Interest rates at historically low numbers are driving buyers to the market as evidenced by the number of Pending contracts – up 17.2% over last July.
- As single family inventory rises, sales will slow down and appreciation will be 2-4% per year and some upper priced neighborhoods will start to flatten the price rises for the balance of 2020 into 2021.
- Denver will not experience a housing bubble for the balance of 2020. Corrections to some sub areas may occur even in a hot housing market.
- The prediction of increasing inventory will slow prices, but the recent reduction in interest rates will bring buyers to the market, causing prices to continue a slow growth model.
What Should Buyers Do in Today’s Market?
- Know the numbers of sales and prices in the neighborhoods you are searching for homes.
- Become the most attractive buyer by being pre-approved for your loan.
- Study the trends of the price range you are buying within to make the best deal possible for you.
What Should Sellers do in Today’s Market?
- Improve your housing information on all Online sites as buyers are looking to Realtor.com, Zillow and Trulia.
- Make your home sparkle from the street throughout the entire home.
- Know the price trends for your home. Overpricing is a mistake in today’s market.
So, How’s the Market, August 2020 All data taken from REColorado on August 14, 2020 for the 8 county Denver Metro Area.