Market update for January 2020

• • Average Price of both Single-Family homes and Condominium Homes Year over Year in January was $464,263 vs. $451,098 in 2019, a 2.9% appreciation increase. We are starting see prices flattening as there was a meteoric rise of prices from 2013 through 2018 which is somewhat unsustainable after the 62%+ increase in prices over the previous 6 years.

  • Inventory for January 2020 decreased 17.9% over January 2019. This does show that Denver homeowners are not putting their homes on the market right now. From September to February 1, 2020, inventory decreased 38% This is a significant decrease in inventory meaning demand for homes should remain constant through the next several months as buyers will not want to miss housing opportunities and into the first quarter of 2020.

  • The number of homes closed in January 2019 was 2,789 compared to 3,030 in January 2020, a 8.6% increase in closings. This signifies the buyer pool took advantage of lower interest rates that occurred in late 2019 and are actively looking to buy homes earlier than normal.

  • Days on the Market is 44 days which is 4.8% higher than 12 months ago. However, the number of homes placed under contract in January 2020 is down 15.8% over January of 2019. That lower pending number will show slower growth over the next 60 days.

The anticipated slowdown of housing sales in the 4th quarter has not happened the way it typically would and the market is now outperforming 2018 numbers with a very strong finish to the year. With the colder weather in Denver in November and December, which should have slowed the pace of sales and it did not do that, coupled with the potential of no increases in mortgage interest rates for the early part of 2020, the real estate market is liable to continue with the positive results this holiday season and into 2020 outperforming the previous years data in number of units sold.

All data taken from REColorado on February 20, 2020 for the 8 county Denver Metro Area.