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Denver's Dynamic Real Estate Market

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Denver Market - October 2021 Trends Report 
Source:  Denver Metro Association of Realtors, November 3, 2021
October 2021 report signifies that there are aspects of the current housing market to be thankful for in the Denver metro area.

In a year of continued turbulence, October represented a month of relative ease in the bumpy Denver real estate market, signaling gratitude across the housing industry. Across the board, the majority of statistics were seasonally consistent with what Denver has seen in years past, boding well for more households having the ability to host a Thanksgiving dinner. With prices staying consistent month-over-month, the door has opened for buyers that were previously exhibiting burn out in the home search process.

In the month end active inventory, Denver saw that when lower numbers change, they yield higher percentages. At the end of October, there were 3,376 properties on the market, a 14.98 percent decrease from the previous month. The amount of listings also decreased by 13.28 percent, showing minimal changes in the month end inventory.

Denver Market - September 2021 Trends Report

Source:  Denver Metro Association of Realtors, October 21, 2021

September 2021 report shows that with a 10.86 percent increase in inventory,

now is still a fiery hot time to buy in this market. 

After Realtors® felt a relative slow down and seasonal return in July and August, September felt back to the normal red-hot speed in today’s housing market. Closed properties were 12.81 percent lower than last month at this time and a notable 19.27 percent lower than last September. With lower inventory and fewer homes, the balance of supply and demand stayed steady, leading to another month of competition for buyers. Months of inventory increased to .76 and while it may not have felt like a huge increase, it gave potential buyers a few more options.

Excluding the $0 to $99,000 homes, the most competitive market ranked in the $300,000 to $399,999 range. This price point had 0.51 months of inventory with a surprising 218 closed properties, showing that one can indeed still find a single-family detached property under $400,000. The least competitive market was attached properties over $1 million. While there were still 56 attached properties that sold over $1 million, the month-of-inventory for this category was 2.16, more than four times less competitive than the $300,000 to $400,000 and the $400,000 to $500,000 range.

Denver Market - August 2021 Trends Report 

Source:  Denver Metro Association of Realtors, September 15, 2021

 

August 2021 report indicates a slowdown in inventorywhile still being a good time for burnt-out buyers to re-enter the marketas seasonality takes hold of the area.

Keeping in trend with traditional seasonality, the transition from July to August felt like a shift as vacations slowed down in preparation for the school year and fall. Buyers are more willing to be patient in order to find the right house for the “right” price. The report saw this reflected in the days in MLS, which increased from nine to 11 in August 2021. Likewise, the close-price-to-list-price ratio dipped ever so slightly month-over-month. In a dramatic data point, the month-end active inventory dropped 11.69 percent. Historically speaking, the change in inventory is relatively consistent from July to August. 

 

However, with both inventory and new listings decreasing, the short-lived “loose grip” on inventory has tightened once again. Months of inventory decreased from the previous month to 0.637. The report also indicated that if no one were to put a property on the market for 19 days, there would be nothing to sell in the entire Denver Metro area.

 

Denver Market - July 2021 Trends Report 

Source:  Denver Metro Association of Realtors, August 11, 2021

 

July 2021 data demonstrates that the pool of buyers continues to shrinkin terms of affordability while sellers continue to list their homesin expectations of it selling higher.

 

While still in a robust seller's market, the July 2021 report indicates that as we head into fall, buyers will start to have more time to review properties and less competition on the number of offers overall. The July residential real estate market reported an increased inventory of 29.92 percent, while it also represented a decrease in closings of 12.30 percent compared to the previous month, indicating a supply increase and demand decrease.

 

While the average closed price was 16.40 percent higher this July than July 2020 and July represented the lowest number of active properties at month's end in July’s history, with an inventory of only 4,056 properties, this number actually increased from June to July, reflecting the flow of the market.

Denver Market - June 2021 Trends Report

Source:  Denver Metro Association of Realtors, July 5, 2021

 

June 2021 shows a trending return to normalcy with a month-end inventory increase

of over 50 percent in the Denver Metro Real Estate Market.  

 

In June 2021, the report shows that what goes down must come up. Overall, month-end active inventory increased 50.46 percent compared to May 2021, which is the highest percentage of month-over-month increase in DMAR records. The number of new listings was up 23.89 percent month-over-month.

 

Likewise, the number of closed properties increased 9.29 percent. More houses hit the market in June and therefore more people had the opportunity to buy, which is reflected in the month of inventory increasing to 0.50. While historically this still remains incredibly low, it does show a slight shift from the previous month which was 0.39.

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. 

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Linda Sease

Real Estate & Interior Design

303-319-5829

Linda@LindaSease.com