With extremely low supply, strong demand and low mortgage rates the Greater Denver Metro housing market is on strong footing
With the spring and summer months behind us and the kids back in the new version of school, typically we see families hold off on purchasing a home. Moving can be a big undertaking and families tend shift their focus during this time of year to adjusting to the new school schedule and escorting their kids to after-school activities. However, 2020 has been nothing close to ordinary and the Spring and Summer Markets have reflected that. With school not returning in its traditional sense, all signs point to a strong September and October market.
Sold Price Summary for August 2020
- Single Family Average $593,416 – Up 14% YoY
- Single Family Median $505,000 – Up 12% YoY
- Condo/Townhome/Multi Average $376,172 – Up 2% YoY
- Condo/Townhome/Multi Median $323,000 – Up 5% YoY
Active listings have dropped to the lowest levels in well over a decade
Just when you thought inventory couldn’t get any lower – it did. Historically it’s not unheard-of to see a drop off in August for active listings with families preparing for back to school. Though, a steep 7.1% drop-off between July and August has not been seen in many years. Considering the anticipation of a strong Fall Market, the tight inventory will continue to push demand through the roof.
Active and New Listing Summary for August 2020
- 4,888 Active Listings – Down 42% YoY
- 6,294 New Listings – Down 16% YoY
Demand is at the highest level for August in over a decade
What comes paired with low inventory? Increased demand, of course. August saw another decade-high for pending listings – higher than we saw in July but not quite as crazy as we saw in May. With the combination of low inventory, schools not being back to in-person sessions, and rates continuing to be historically low, it’s easy to anticipate that September will be another competitive month for buyers.
Demand (Pending) Summary for Aug 2020
- 7,535 Pending – Up 25% YoY
Percent of Closed to List Price
With increased demand and extremely low supply the percent of closed to list price has increase each month since May – unusual for this time in the market.
Source: J.. Renshaw/Land Title Guarantee Company