That’s the question I’ve been waiting to answer! Many things were taking shape in April in our local real estate market while stay-at-home orders were in effect, real estate showings were forbidden, covid-19 cases plateaued, and unemployment claims continued to rise.
The real estate market has definitely been affected, but not in the “recession equals housing crisis” way, yet. Even though the economy has slumped, home appreciation is still remains!
Let’s take a look at our current real estate numbers for the Denver metro and surrounding areas with out current April data. Ths month’s data provided a much fuller picture of how COVID has affected our real estate market. I want to take a look at weekly activity by price point, a summary of stats for April for our 11-county region, and a YTD comparison to recent years.
How did key market activities change in April? See the chart below with a few observations for each price point. (Although I’m offering some general trends/observations, sometimes the given weekend or neighborhood can vary greatly from the overall trend. )
In our DMAR Market Trends May report that was just released yesterday, you can clearly see the effects of COVID-19 on our real estate market. Here’s a snaphot:
We see that median and average home prices still continued to rise. The number of closed sales dropped considerably. The Days in MLS is down significantly indicating that homes that hit the market are being absorbed right away. While supply has dropped (active inventory is down), the demand remains. That’s creating price growth.
Let’s take a look at YTD comparisons.
This YTD report echoes the May report. While active/new listings, sales volume, and days in the MLS are all down, prices are up and further ahead for the time of year compared to the last 5 years. The other item to note is that the close price/list price ratio is at 99.57% – that’s an improvement from the same time last year. This means that sellers are getting closer to their asking price on average. That’s great news (if you’re a seller!).
If you’d like to review any of the data with me in more depth or get my opinion on the market (or if you’d like the full reports), please reach out anytime. Although I can’t predict what will happen, I’m always up for a great discussion!
Thanks for reading and stay safe out there!
Realtor and Founder
Your Castle Real Estate