WANTED: Sellers Willing to Sell Fast & At Top-Dollar!
- Inventory for December 2020 decreased 50.56% over December 2019 from 6582 units in 2019 to 3259 units in 2020. The lack of inventory will continue to drive homes sold and appreciation for the first 6 months of 2021.
- The number of homes closed in November 2019 was 4,099 compared to 5,199 in November 2020, or a 21.2% increase in closings year over year. This signifies the buyer pool took advantage of lower interest rates that occurred in 2020 and moved quickly due to low inventory.
- The contracts that are pending to close are leveling off. Pending contracts in December 2020 show 5199 units, and 5397 pending contracts in December 2019 – or a 3.67% reduction. This is the first month the Year over Year pending contracts were less since May 2020 during the height of the pandemic. This flattening of pending contracts would tell us a few things about the first quarter of 2021.
- Closings of homes will be reflective of the fewer pending contracts.
- Appreciation will start to slow some in the first quarter.
- Inventory will still be at low levels.
- The number of months supply for housing in the Denver market is running at 19 days. This is a very low supply and we would anticipate the supply to continue to be low for 2021.
PREDICTION: 6% Increase of Homes Closed in 2020
So, How’s the Market, December 2020 All data taken from REColorado on December 14, 2020 for the 8 county Denver Metro Area.