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You are here: Home / Blog / So How’s the Market? August 2020

So How’s the Market? August 2020

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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. 

 The Answers! 

  • 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.