So Kelsea, how's the market anyway?!
It has and always will be, my most asked question. With covid-19, this question is more relevant than ever before. So, while I usually switch up my monthly blog posts, we will continue to dive into how Denver is looking amidst the coronavirus.
March market stats are hot off the press! These are the numbers that most real estate professionals were eager to see. Why? Because the world was in lockdown, and this data shows how the market looked for the past month.
Active inventory increased by close to 19%. What does that mean? We were just about to get into the busy spring buying season when covid-19 locked us at home. The increase in listings, even with covid-19, is exciting to see. While a significant amount of folks have lost their jobs, the buyer pool is still incredibly strong. This gives buyers a small window of opportunity to scoop up a home with the extra inventory. We also saw that closing transactions were down close to 25%. It comes as no surprise, as there were weeks where no in-person showings were allowed. With the inability to see homes in person, it is evident that most buyers decided to wait to write offers and close on their houses until after those restrictions loosened.
The silver lining is that the average and median home prices both decreased by just over 1%. The median home price is floating right around $440K (including both single-family and attached), and the average home price about $503K. With interest rates still at an all-time low, this could be an excellent opportunity for the right buyers.
Now, let's chat about how this is affecting both buyers and sellers. Covid-19 has shifted the market at specific price points. The luxury market, which is anything over $1M, is now in a buyers market with right around seven months of inventory. If you are looking to buy a home in this price range, you've got options and negotiation power!!! Sellers, if you are listing your million-dollar home, know that you will have competition, longer active to pending timeline, and pricing is critical.
The most active price range is $300-$500K, where there is still a shortage in inventory leading to multiple offers and over asking list price. Even with covid-19, the Denver market has shown that it is still vibrant and busy!
Now, no one has a crystal ball to tell you what the future looks like, but based on the data, we can say that Denver is moving forward. In my personal experience, inventory is moving, buyers are motivated, and those looking at homes are serious and well-qualified. I feel that the regular spring market (April, May, and June) will get shifted into the summer months as we all slowly get back to the new business norm.