Denver area home prices continues to set all-time records
Denver area home prices continues to set all-time records with the average sales price for both single-family detached and attached properties at $625,100 and $393,733 respectively, as well as a record-low for months of inventory at an astonishing 0.81 for the month of October. While October is generally consistent in the momentum of which is transitioned from September and into November, the compounded effects of the COVID-19 months have created historic numbers with only 4,821 active listings. This represents the lowest amount of active listings for any October on record by nearly 2,000 listings. Because of the lack of inventory, this also explains why the 24 days in MLS represented the lowest on record.
October continued to defy seasonality as new records were broken by both buyers and sellers. Sellers continued to have little competition as escalation clauses, appraisal gap waivers and “as-is” offers were frequently used, as buyers try to secure a place, they could call home!
However, while there is not an abundance of inventory, the actual process of buyer and selling has not slowed down, with 5,984 closed transactions. November could also represent another big month as a record 6,141 pending transactions occurred during the month of October. The common theme throughout the month of October: “Denver area home prices on the rise”.
For the luxury segment, in October 2020, closed sales for detached and attached luxury homes skyrocketed to over 115.74% from this time last year while the sales volume climbed to 126.70% to over $668.6 million for the month of October. With 1.88 months of inventory and median days in MLS dropping 8.33% to just 55 days, detached luxury homes are firmly sitting in a seller’s market.
In November, the Greater Denver Metro housing market continued to boost all-time records, with median days in MLS for detached single family homes at a very speedy five days, representing a tie of the lowest number on record, having seen five days only five times every before.
Active listings for both attached and detached single family homes came in at 3,415, surpassing the previous low set in December 2017 of 3,854. November also set an additional record-high with average close price for combined single family detached and attached properties, and detached single family homes at $549,756 and $615,766 respectively. The previous record for combined single family detached and attached properties were in 2019 at $486,012.
While the holiday months do generally see a decline in inventory, months of inventory this particular November hit another record-low at just .71, easily beating October 2020’s former lowest record at .81. For the single family detached market, Denver only had 1,755 homes currently available for sale, representing just .51 months of inventory. This basically means that if no houses were put on the market for two weeks, there would be nothing left to sell….
Typically, the most active amount of inventory is in the $500,000 – $750,000 price range, but this November was a different story and it was homes priced over a million dollars. Currently, there are 561 single family homes on the market priced at over a million dollars, almost one third of the overall inventory.
For the luxury segment, which are properties that sold for $1 million or greater, new listings were up 17.09% compared to last year, with sales still up year-over-year at a staggering 69.59%.
Meanwhile, Months of Inventory for the detached homes in the Classic Market which are properties that sold for $400,000 – $499,000, dropped to just over .27, arguable making the Classic Market the most competitive segment of the Denver real estate market.
Here’s how many Denver area homes are selling above list price – and by how much:
Roughly 30% of the Denver-area homes that sold in September traded above their list price – more than double the percentage from the same period a year ago, according to a new study by Zillow. The rate of homes selling above list price in Denver outstripped the national average of 22.4%.
According to the U.S. Census Bureau, Colorado has been growing for years and has added about 760,000 people since 2010, or about 76,000 people per year, which is the eighth-highest in the country.
Denver is the 3rd-hottest market for millennial homebuyers:
According to the recent released study from Charlotte-based Lending Tree LLC, 59.07% of all Denver area homebuyers in 2020 were millennials. The average age was 31.25 and the average loan was $354,433. The average down payment was $56,937. The data is based on Lending Tree applications.