June 2020 Denver Metro Market Report [UPDATED]
*Pending Listings - These are what we call a "leading indicator" - they tell us what is going to happen. Because Pending Listings have increased 104.6% over April 2020 and TOTAL pendings are up 4.1% compared to May 2019 - which is the HIGHEST pending level for May in more than a decade!
Summer is the New Spring
Check these 10 things to get your house ready to sell 👉
Denver Market Highlights🏡
There were a lot of unknowns heading into May🤔
Real Estate professionals were released back to showing properties with restrictions. Would inventory surge with previously withdrawn listings re-entering the market? What about buyers, will the pool be resilient considering unemployment, furlough, and salary loss? Will our market extend into the summer as a prolonged market since we were placed on pause for 6-8 weeks? Let’s take these questions one at a time, overall, we remain incredibly encouraged and just plain amazed at the activity we’ve seen as we all seek to find our new normal.
Would inventory surge with previously withdrawn listings re-entering the market? 📈
We’ve been watching numbers closely for new listings as well as back on market transactions- through the events of COVID-19 and deeper levels of quarantine many sellers self-selected and removed their home for sale from concerns surrounding the disease. From March 26th- May 8th, when Denver was in various levels of quarantine limiting showing and real estate activity nearly 1,400 units chose to withdraw from the market. Since May 8th we’ve seen roughly 800 previously withdrawn units return to market, at roughly 200 units per week since quarantine ended. As it turns out, many sellers have had different emotional responses and levels of comfort in relisting their home and the flood never happened, and at the end of May our predictive months of inventory dropped back below 1.0 months. When inventory drops back below 1.0 months- that means there are more buyers in the market than homes to sell them creating a market where multiple offers are likely, especially at lower price ranges. Buyer activity outpaced listings returning to market, and new listings activity as well. It’s safe to say, even though it looks and feels different with new procedures in place the market is back.
What about buyers, will the pool be resilient considering unemployment, furlough, and salary loss?🤷
Our buyer pool showed signs of being highly resilient, and certainly made of for lost time from March and April. May represented the single most units placed under contract for both attached and detached dwellings ever in Denver. There were 6,322 units placed under contract- this beats the average for May from 2013-2019 where we typically expect approximately 5,600 units to be shifted to pending, by nearly 13%. When we look at buyer activity for year to date expected offers accepted, we are now only 4% behind the mark in 2020. If we continue to experience this buyer surge, we will be back on track annually by the end of June to catch up to where we should be for pending transactions. Check out the monthly and YTD comparisons, they are new to the report…. As well as the new price range analyses in each section, now including prices up to $5,000,000.
Will our market extend into the summer as a prolonged market since we were placed on pause for 6-8 weeks? 🍀
No one has data to support or project what comes next. My thought is that if we continue to have this extra wave of buyer demand, and once we catch back up to YTD our market has traditionally slowed shortly after Independence Day. We could experience that traditional slowdown as we typically do, with everyone being cooped up through the winter and stay at home measures, Coloradans appreciate their outdoor time. But we could be wrong. Again, it’s difficult to say what comes next as these are all new events. I commit to putting together the weekly COVID-19 reports until we have a better sense of how we have adjusted.