We’re heading into the summer real estate market here in the Denver area and Front Range
From what I’m seeing in the stats and experiencing first hand with my clients in our market, our spring selling season seems to have been delayed slightly and will be extending into the summer season. We were all wondering how the market would be affected by COVID-19 and the mandatory shutdowns in early April. It was obvious that showings and sales would be impacted. They were. Normally, April and May would be the time of year we’d see peak prices as a result of a robust spring season. That hasn’t happened yet. Now, I won’t be surprised to see those peak prices happen this summer since we missed that spring window while all being stuck at home.
Current Market Overview
At the end of May, the number of homes active on the market was down 19% from this same time last year. We also saw the number of home sales drop by almost 49%! That’s a huge number, but not that scary when you consider we had record number of homes withdrawn from the market over the last 2 months. While the average price dipped slightly, the median price still continued to climb. We’ll most likely see these inventory and sales numbers rebound in June or July.
This was a big story when the shut downs were being implemented. The number of listings withdrawn from the market really caused a stir and for good reason. This graph shows how this year compared to last. As you can see, we’re looking a little more normal for the time of year as we head into June. That’s good news! Keep the inventory coming and we can get buyers into homes.
I think this is the real story and a testament to the strength of our real estate market in the greater Denver area and Front Range. Take a look at these two illustrations. Home-buyers are out in force and need homes!
Showings per home listing are rebounding well.
New home purchase mortgage applications are at a multi-year high!
Seeing how quickly showings and mortgage applications for purchases rebounded is very encouraging. With that jump in activity, we can expect to see robust sales activity for the next several months. What does that mean? Most likely we’ll see home inventory jump as well as every other category like pendings, sales, and pricing. The only thing we may see drop is the number of days on market – no surprise for a typical “spring” market.
Contact me today to learn more. See that “chat” icon in the upper right hand corner? Reach out and my team will be available to help. Have a great day!
PS- If you’re considering taking advantage of the market and selling your home, but don’t know where to start, click on the “selling your home?” link below for a video from me!