The Denver Real Estate Market had an exceptional month in August. There were more homes sold last month than in any other August on record. So, it should come as no surprise that housing inventory hit a low point, with 40% fewer homes on the market compared to last year.
Dwindling Single-Family Home Inventory Leads to Record Prices
The average single-family home price in Denver reached a new record high of $606,330. There simply are not enough homes to meet buyer demand. In addition, single-family homes between $500,000 and $749,999 are at a staggering .66 months of inventory.
In other words, if no new listings hit the market, we would be out of homes to sell in a matter of weeks! At Sophisticated Properties, we are confident that if we had 20% more active listings, we would have 20% more sales! This is most definitely a seller’s market.
Denver Real Estate Market Mostly Strong Across the Board
This hot market does not end with single-family homes. Real estate in Denver is a seller’s market across the board – with the lone exception of condos and attached homes priced over $1M. Inventory in that segment is at a respectable 5.6 months, compared with 2.7 months for luxury, single-family homes. For comparison, a balanced market will generally have around 6 months of inventory.
Attached homes make up only 10% of the luxury real estate market in Denver, but they showed some weakness last month. For these homes, we saw a 10% jump in inventory and a decrease of 18% in closed transactions, compared to this point last year.
In comparison, the single-family home market over $1M has closed over 11% more volume than had closed by this time last year. New listings in the entire Luxury Market were up 11.7 percent, compared to this point 2019. Pending contracts were also up by 20.17 percent, and the total number of sales was up 8.09 percent.
Real Estate Market Tidbits for August
According to NAR, Colorado has two of the top ten “work from home” counties – Douglas (2nd) and Broomfield (8th). The top spot went to Forsythe County in GA.
According to Elliot Eisenberg of Bowtie Economist, homebuilder sentiment is at its highest level since 1998.
Corelogic made a shift in its national appreciation for year-over-year forecast to .6%. This is a big change from the 6% depreciation it forecasted only 2 months ago.