If you are thinking about buying or selling your house the latest housing numbers for Denver provide opportunities according to industry experts.
About Denver County.
With an estimated 727,000 residents, the City and County of Denver is the 19th most populous city in the U.S. If we combined the adjacent counties with the metropolitan area surrounding Denver accounting for about 85% of the state’s population. Therefore it provides great insight into the state’s housing market.
The last few months of housing data have some experts cautiously optimistic about the direction of the housing market. Andrew, of Big Red Holdings, a real estate investment company in Vail, CO said “Several months ago there was a lot of fear surrounding the Corona Virus which resulted in stocks plummeting and a lot of talk of the housing market to follow. Certainly, real estate investors vanished overnight. These latest numbers, while not showing significant growth, do not indicate a significant drop in people’s homes. Andrew continued “Time will certainly reveal more, but I suggest being patient and look at the numbers before drawing conclusions – particularly when reading headlines as they can be miss-leading. I still believe the US housing market is a good long term investment and a slight softening could present some great opportunities to buy “
sense of the last few months of housing
The coronavirus has affected every aspect of American life in recent months. It makes sense that it would also be affecting real estate markets.
In Denver County, real estate agents report that sellers are being cautious. Many are holding off on listing their homes due to uncertainty and concerns about the virus. Buyers are also more reluctant, with concerns about their financial situations.
Sales prices, however, have remained strong. That coupled with low-interest rates may encourage more people to buy in the coming months, although it may be too soon to tell for certain.
Let’s take a look at the market stats for Denver County. This market report covers single-family homes during the month of May 2020 and a summary infographic can be viewed here.
Denver County CO: New Listings for SFH.
The number of new listings in May 2020 was reduced. This number represents the number of new listings placed on the MLS during the specified time period.
In May of 2019, there were 1,151 new listings. This year, new listings are down by 15% with only 969 homes going on the market. Real estate agents attribute this trend to fears surrounding the coronavirus. They anticipate that listings will go up when people start feeling more secure.
Denver County CO: Sold Listings for SFH.
The number of sold listings also took a sharp dive, though not quite as far. In May 2019, 812 homes were sold. This year it dropped 48.6% to only 417 sales.
Denver County CO: Median Sales Price for SFH.
The median represents the middle of a list of numbers. This means that half the homes sold for more and half the homes sold for less than this number. In 2019, the median sale price was $500,000. In 2020, the median price increased by 4.6% to $523,000.
Denver County CO: Average Sales Price for SFH.
The average sales price, however, went down from $632,363 in May 2019 to $621,962. This is a small change of 1.6%.
Denver County CO: Percent of List Price Received for SFH.
The percent of list price is an intriguing statistic that demonstrates what buyers think that homes are worth. In May 2019, buyers were paying 99.4% of the list price, and this year went down to 99.1 a 0.3% change.
Denver County CO: Days on Market (DOM) for SFH.
The number of days on market dropped considerably from 20 days last May to only 19. This could be due to the fact that with fewer listings (less inventory to choose from) listed homes are sold faster as buyers compete.
Denver County CO: Inventory for SFH.
As expected, inventory was down from 1,287 in May 2019 to 816 this year. This is a 36.6% drop in available homes.
The month’s supply of inventory is also down from 2.1 to 1.4. This number represents how many months it will take to sell the current inventory. These numbers indicate that this summer could be a great time to sell a home in Denver County quickly and for its full list price — or close to it.
Jennifer, an investor in markets across the country including Denver, Tampa, and Indianapolis stated “The latest report for Denver shows house prices remain strong and inventory low. Combined with low-interest rates and that we are moving into the summer I’m excited for the next 6 months. Add to this Governor Polis lifting restrictions and I am quietly optimistic for the housing market in Denver and in fact nationally.”