I’m a broken record, and this market is breaking records!
Welcome to Market Monday, where we review the Denver real estate market and break it down into clear and informative bites! 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.
Even as we count down the days until the end of the year - a season in which we usually see the market cool down a bit - things are still moving right along, continuing to show us that 2020 is anything but normal. I feel like a bit of a broken record with all of my “low inventory, high demand!” crowing these past many months!
First of all - inventory. Can our active listings go any lower? We asked that last month, and they indeed dropped again. November’s active listings count - 3415 - is the lowest for any November we’ve seen. Not exactly the records we want to be breaking, especially if you’re a homebuyer!
Take a look at the Denver Metro Association of Realtors’ Market Overview for October. In looking at all residential listings for 11 Metro Denver counties, active units are down 29.16% from October, and a massive 51.13% from November 2019! Average close price is at $549,756 ($615,766 for detached and $391,390 for attached). Closed transactions, while down from October, are still up quite a bit from November 2019 - that monthly dip is likely only an result of low inventory and not indicative of reduced demand.
More on inventory: Detached active inventory is down 62.73% from this time last year, with only 1,755 units. That low number, combined with the continuing high buyer demand, means that we only have 0.5 months supply of DSF inventory. The months supply of inventory measurement means that, if no new listings came on the market, keeping the current level of demand, we would run out of listings in 2 weeks.
While pending and closed transactions are down from last month, they’re still up from this time last year, indicating that all of the inventory is getting gobbled up. 🦃
Attached single family (ASF - condos, townhomes, duplexes, etc) is seeing a similar story in the numbers - active listings are down 23.78% from last month and 27.16% from this time last year, while pending and closed transactions are following the same trend as detached - down from last month, but still up from last year. Days on market are only down 3.85% (compared to detached, down 13.04%), so overall condos and townhomes are not quite in the same frantic flash-sale frenzy as detached homes (though this is just an average, and your experience may vary)!
Generally, the more you are able to spend, the easier it will be in this market (how’s that for an obvious statement?). Current DSF months of inventory stay under 1 for all price ranges until you go over $1 million, and active units jump up over that point as well. The higher the price point goes, more and more of the buyer pool falls away, leaving less competition and more opportunity.
If you are thinking about buying (or out in the market trying to buy right now), you may look at this and feel overwhelmed, frustrated, or hopeless. I hear you, I feel you, and I’m with you! Potential sellers are not listing for a variety of reasons - COVID concerns, the holidays, or even an inability to find a replacement home in this market. Some may be waiting for the new year.
If you’re thinking of selling, there’s no need to wait for the new year if you don’t have to - the demand is fierce, and that puts you in the driver’s seat! Buyers that are out in this season are generally motivated and serious - it’s a great time to get in front of them!
If you want a guide and advocate to help you seize that opportunity, I would love to be of service. Email, call, message, text… I’m here and I want to help you with a strategy to win.
Questions or Comments? Leave them below or contact me at the button!
Numbers and stats from Denver Metro Association of Realtors.