Denver Market - May 2021 Trends Report
Source: Denver Metro Association of Realtors, June 5, 2021
May 2021 proves that even buyer fatigue cannot stop
Denver Metro area buyers from slowing down or giving up,
with increased opportunities rising an extreme market.
In May 2021, the data demonstrated that while it is an extreme seller’s market in the Metro Denver area, closings are still happening, up 18.78 percent, despite active listings being down 4.11 percent year-to-date from 2020. At the same time, the report showed that closings are up 18.78 percent, an extreme statistic that is both a reflection of how the pandemic shutdown impacted the real estate industry last year at this time and yet also supports the concept of increased buyer demand.
Throughout 2021, the Metro Denver area has seen cracks in the attached market while the detached continued to rise in urgency and price. In May, buyers saw those cracks and moved on a relative opportunity in the attached market creating the lowest month-end active inventory on record, with only 739 properties available to sell. Those cracks are now gone, and it is a strong seller’s market for every property type and price point.
The Denver Metro’s 2021 real estate market has turned into an unpredictable year, lacking seasonal consistency with rainy weather in tow, while prices continue to skyrocket. The area hit a new average sales price record of $700,559 for single-family detached properties.
Denver Market - April 2021 Trends Report
Source: Denver Metro Association of Realtors, May 5, 2021
Greater Denver Metro real estate market depicts an ongoing inventory crisis
due to hyper-demand in the region…but there is hope.
April 2021 in the Greater Denver Metro housing market showed that the blatant hyper-demand in the residential housing industry continues to result in historic low months end inventory, even with months-end active inventory increasing by 35.03 percent.
Altogether, there were still only 2,594 active properties at the end of the month, representing the lowest April on record and 48.38 percent less inventory than the previous April low in 2015. As one reflects on this month's market trends report, it is important to remember where the market was this time last year.
April 2020 was a month of confusion, fear and uncertainty for the world. The ebbs and flow of being an “essential” worker were reflected in new listings last year, which were down 43.02 percent compared to April of this year.
Since last year, the market has seen a steady rise in competition and therefore prices have as well. With only two weeks of inventory, year-over-year appreciation continues to be both staggering for the market while also bringing home sellers inevitably great returns, increasing 24.20 percent in April.
Denver Market - March 2021 Trends Report
Source: Denver Metro Association of Realtors, April 5, 2021
One-year post COVID and this unwavering seller's market makes it clear that buyers are left making emotional decisions
rather than factual ones when purchasing a home.
In March, the Greater Denver Metro housing area displayed itself as an emotional market, with nearly every statistic in the report justifying how much competition there is for buyers as well as how far they are willing to take their offers to secure a home.
Year-over-year appreciation is at 15.26 percent from $511,511 to $589,587 this March, while month-over-month appreciation is at 6.90 percent from $551,542. On par with recent months, median days in the MLS went down to four, while close-price-to-list-price ratio went up to 103.32 percent. Whether looking at detached or attached properties, it is a strong seller's market across the board.
Theoretically, the DMAR report shows that if a buyer waited just one month to buy a $500,000 property from the end of February to the end of March, they would have had to pay $35,000 more for that property.
Denver Market - February 2021 Trends Report
Source: Denver Metro Association of Realtors, March 3, 2021
The underlying 2021 theme of this seller’s market is that buyer demand continues to stay hot,
even as many buyers continue to be iced out in this fast-paced market.
In February, the Greater Denver Metro housing market proved that the underlying theme of this market is speed: speed at which buyers are purchasing relative to the number of sellers listing, and the speed at which active properties are going under contract while prices are accelerating.
While many metrics still show detached properties are in higher demand than attached, that gap decreased in February. There were 3,641 closed properties, up 3.70 percent from last year at this time, and in part because attached properties were on the rise. Attached properties saw a 16.29 percent increase in closings relative to last year at this time.
The increased demand for attached properties propelled the market to an average close price of $401,552. This is the first time the attached market has had an average price above $400,000. Meanwhile, detached properties saw a 1.80 percent decrease in closed properties relative to last year.
Denver Market - January 2021 Trends Report
Source: Denver Metro Association of Realtors, February 3, 2021
Inventory drops to historic lows at the average price of single-family detached and attached homes reaches record high.
In January, the Greater Denver Metro housing market again broke an all-time record, a new inventory inventory low with only 2,316 total properties on the market, translating into an inventory shortage and opportunity for appreciation to accelerate.
Single-family detached properties hit a record average price of $629,159, while attached properties hit a record of $397,792. Single-family home sellers saw a 101.03 percent close-to-list price price in January and a drop to five days in the MLS, down from six last month and 24 days last year.
Overall, the drive in demand has been proportionally higher for single-family detached properties than attached properties, explaining why the market is currently sitting with historic low inventory for single-family detached properties.