Denver Real Estate Market Update – June 2020
In the month of May home prices in Denver went down both from the prior month and year over year. Average sales price came in at $495,925. This was down 1.24% from April and down 1.31% from May of 2019. Keep in mind that these were homes that closed in May. A majority of homes that closed in May likely went under contract in April. For the majority of April Realtors in the Denver area were not allowed to show homes due to the coronavirus lockdowns.
Although in April Denver was in a seller’s market according to the lack of inventory, I think both buyers and sellers felt that buyers had the upper hand. First of all, with an uncertain future seller’s were more likely to accept a lower offer. And buyers were aware of this. Second, with Realtors not being able to show homes, sellers were just happy to receive an offer since buyers had to make offers without even seeing the home in person.
3,152 homes sold in May. This was down 19.71% from April and down 48.86% from May 2019. Again, keep in mind that these were homes that likely went under contract in April when there were no showings allowed in the Denver area. So, it makes sense that sold homes were so low in May.
On the brighter side under contract homes were up significantly in May showing promising signs for the Denver real estate market. 6,809 homes went under contract in May. This was up 114.86% from April and up 11.92% from May 2019.
This is quite encouraging. As a Realtor, I was a bit concerned for the future of the market in April. But May started, we were allowed to show homes again and my phone started ringing off the hook. I watched homes go under contract fast and even found myself in a multiple offer situation on a home priced near the $600k range. Yes, in May it seems that the Denver real estate market took off like a rocket.
May ended with 7,170 homes on the market. This was up 4.6% from April but down 19.36% from May 2019. Denver still sits comfortably in seller’s market territory.
Buying or selling a home in the Denver area? Contact Courtney Murphy. Courtney is a Denver metro Realtor and long time resident with experience in both resale and new built home sales.
