Pent-up Demand, Unleashed!
This is the first installment of what will (hopefully) be a regular Monday feature, reviewing the Denver real estate market and breaking it down into clear and informative bites! (Also, today is Tuesday, so we’re not off to the greatest start, but bear with me!) If you have any specific questions or areas of the market you’re curious about, reach out and I will do my best to get you an answer.
Residential attached and detached. DMAR.
Restrictions on real estate activities - including showings - suppressed our normally hot spring season in March and April. That pent-up demand was unleashed on the market in May and June, with demand eating up nearly all of the available inventory! (See graphic - May saw 7,170 active listings - and 6,809 pending transactions! This includes attached and detached.)
Projected and actual appreciation. Megan Aller.
Even with this flurry of activity, appreciation is 7.3% behind projections based on the past 7 years. (See graphic for pricing/appreciation; detached only.) Additionally, we're heading into the mid- to late-summer slowdown, a seasonal shift we see each year, where the buyer pool (demand) fatigues and falls away, and inventory (supply) increases slightly.
Days on market. Megan Aller.
What does this mean for you? If you're looking to sell, you may have missed your ideal window for maximum impact - but that doesn't mean you can't sell at all! You may need to prepare yourself to be on the market for a bit longer: we see days on market gradually climb between July and December. (See graphic for days on market; detached only.)
If you're buying, the rest of the year can present a great opportunity to get a foothold in the Denver market. You may encounter less competition - historically, the likelihood of multiple and over list price offers is highest from March-June, and starts to decrease. However, it may come at a cost - all of those houses that sold over list price in the first part of the year are now comparable sales for the houses you're looking at July-December, and can push those prices higher.
Check back here every Monday for a quick roundup of what’s going on in the Denver real estate market! You can also reach out or start your search below:
Numbers and stats from Megan Aller, First American Title and Denver Metro Association of Realtors.