I was interested to go in and really take a look at what changes have happened in the market so far. It is hard to say what the long term impacts of this virus will be since we have never quite seen a situation like this (well at least in 100 years).
Things that may effect our market in the next couple of months include job losses, ability for mortgage companies to continue to lend and the restrictions they are putting in place, buyer and seller hesitation. So far the Denver Metro housing market is weathering the storm pretty well.
Experts say there are a couple of reasons for this, number one is the cushion many homeowners have from an average of 10%+ year over year equity growth for the past 7-8 years. The other thing is that our inventory levels are still very low which means right now it is still a sellers market, some stats do show there is a shift happening but not enough to tip the scale to a buyers market at this point. They say on average every buyer should have 6 homes to choose from in a buyers market, that still isn’t the case here.
As expected our withdrawn numbers are pretty staggering, this is the amount of sellers that have pulled their homes off the market over the past couple of months. We have seen more of this happen as restrictions come into place including no in person showings or open houses allowed from realtors across Colorado. Right now business is not as usual as we use more virtual methods and duck and weave changes to get our clients to the finish line whether buying or selling.
Now for the numbers. If you are not a numbers person feel free to stop reading here 😉
Sorry there are no graphs, I have tried so many different apps but they end up taking me hours, if you know a good graph tip, let me know!
Denver Metro Single Family Home 2019 vs 2020
Feb 4421 Feb 3559
Mar 4623 Mar 3958
Apr (1 – 30) 5251 Apr (1-14) 3968
Close Price Average
Feb $503,724 Feb $530,634
Mar $514,438 Mar $556,634
Apr $539, 487 Apr $543,064 (1st – 14th)
Days on Market Average
Feb 41 Feb 36
Mar 32 Mar 28
Apr 29 Apr 22
Number of Closed Sales
Feb 4316 Feb 4667
Mar 5000+ Mar 5000+ (remember these are from homes under contract in Feb)
Apr (1st -13th) 1880 Apr (1st – 13th) 1448
Months of Inventory
Feb 2 Feb 1
Mar 2 Mar 1
April 2 Apr (1st – 13th) 5 (I feel like this stat is off somewhere to be honest)
Withdrawn Listings – Listings Coming off the market
Feb 3 Feb 188
Mar 6 Mar 841
Apr 4 Apr 524
As you can see we came out of a better winter than 2019 and those of us that were active with clients in the market felt that for sure! However we have started to see decreases in the number of closed sales and the equity gains for April so far. It will be interesting to see at the end of the month what the full monthly comparisons are. Days on market were still less than last year though and we are still seeing serious buyers out in the market, even if they are viewing and submitting contract on virtual tours/photos alone.