Denver Real Estate Market Pulse – May 2021
Recent analysis suggested that 9 out of every 10,000 LinkedIn members in the Denver area moved from New York last year. San Francisco and Chicago also supplied our region with a large influx of new workers.
Historically the average increase in inventory from March to April has been roughly 7%. This year, new inventory increased a whopping 35%. However, buyer activity absorbed nearly all the new listings. Generally, the Spring and Summer bring more inventory, but will it be enough to outpace demand and return to a more balanced market?
New Legislation for Denver Renters
The Denver City Council recently passed a new law requiring landlords to obtain a rental license for each of their properties. If the bill is signed by the Mayor, licensing will begin rolling out in 2022 and all landlords will be required to have a license by 2024.
Proponents of the new regulation argue that having city inspectors approving properties will help ensure tenants are getting working appliances, smoke detectors, and homes “free of leaks”. Opponents argue the extra burden on the landlords will pass on directly to tenants in the form of higher prices.
Denver Luxury Real Estate Market ($1 Million Plus)
Since 2017 the Luxury Market has outperformed all other segments. In the years from 2018 to 2020, the Luxury Market averaged approximately 650 closed sales per year. This year there have been over 1300 homes sold at $1M plus and we are only 5 months into the year!
Not only are there over double the homes sold, the average ‘list price to close price ratio’ rose from 97.6% in 2020 to 102.4% currently. April brought an inventory increase of 28% and, while we usually see a peak in August/September, buyers in the Luxury Market may hope to see a respite this summer in what has been an overly competitive, and expensive, market.
Denver Signature Real Estate Market ($750k – $999k)
Good news for those in the Signature Market, listings from March to April were up 21% from March and 112% from a year ago! The myth that there is no inventory is just not true. There isn’t any “active” inventory because the houses are going under contract in days.
If you are in this market, you must act fast to capitalize on new homes as they are listed. This is due to the rate of speed in which they are selling. You should also be ready to pony up the dough because homes in this price range are selling for 104% of listing price. This market is all about timing.
Denver Premier Real Estate Market ($500k – $749k)
In the Premier Market, we need to take a closer look at the month over month data rather than the year-over-year. Inventory from March to April was up 23% from 1813 to 2242, while pending listings were up 13%.
It is normal for the Spring market to bring more inventory, however there was very little respite in this hyperactive market. While there was a rise in inventory, the average days on the market went down from 16 to 10, and the average close to list price ratio was up to 105.6% from 104.5%. This indicates that homes in good condition, price and location are still getting tons of traction with multiple bids.
Denver Classic Real Estate Market ($300k – $499k)
New listings in the Classic Market were up nearly 9% from March. However, most of these homes are attached condos, as single-family homes in this segment are becoming rarer. The total sales volume for single-family homes is down 25% year over year. Attached homes are up 57%, with homes selling at 104% of list price. We will see fewer and fewer detached homes in this segment as buyers will be choosing from attached properties.
Contact the Property Consultants at Sophisticated Properties
At Sophisticated Properties, we’re more than just realtors™. So, if you are buying, selling, or looking to lease your luxury property in the Greater Denver Area, give our property consultants a call.
We can help you determine whether selling or leasing your luxury property makes the most sense. If you decide to sell or lease, we can provide quality buyers and tenants, and this makes life easy for you.
New To Denver?
Moving to a new city can be daunting! We can help make that process a bit easier by offering a Denver city tour.
One of our consultants will give you a personal city tour which will include showing up to 4 places that match the criteria that you set up for us.
This tour will include taking you through Denver's iconic neighborhoods, landmarks, stores, restaurants, and areas with public transportation. This tour is 3 hours long and cost only $350. If you lease one of our available properties, that $350 will be credited back to you when you move in.