Pent up housing demand and an early start to the seasonally busy spring market drove appreciation for Denver homes in the month of March, averaging a 7% increase year over year for both attached as well as detached properties. Keep in mind that homes with March closing dates likely went under contract before the stay-at-home orders and before we knew how significant the Coronavirus pandemic would become in Colorado. Because closed sale data lags 30-45 days behind what is currently happening in the market, we won't see the impact of the stay-at-home orders until the April and May numbers are reported.
Supply and Demand
Homes went under contract at the same rate that new listings hit the market throughout the month of March, although the number of new listings slowed considerably as the month progressed, keeping pace with waning buyer interest. In addition to seeing less new homes enter the market, 761 homes changed their status to œwithdrawn last month, a staggering jump from months and years prior and a record high for the Denver real estate market. Buyers and sellers seem to be exiting the market at the same rate, maintaining the relationship between supply and demand and keeping Denver in a seller's market for the time-being.
It's NOT Business as Usual
Real estate was deemed essential first by the city of Denver and then by the state of Colorado following their respective stay-at-home orders, with a strict directive to follow social distancing guidelines as we continue to conduct business. The industry responded, with everyone from real estate agents to photographers, inspectors, and closers substantially altering their standards of practice to comply and do their part to control the spread of the virus.
An Update to the Public Health Order
In an interesting turn of events, the Attorney General of Colorado declared that as of April 7th, in-person home showings are no longer considered essential. While real estate transaction services for homes already under contract continue to remain essential, home showings will have to go virtual until the stay-at-home order is lifted on April 26. This will significantly impact the Denver real estate market and buyers and sellers who had been moving forward with their home goals.
A new way of doing business
At Live Urban, we are committed to supporting our buyers and sellers as best as the law will allow and in a way that responsibly facilitates slowing the spread of the virus. We will continue to adapt in order to keep our clients informed and do what we can to showcase our listings and help our buyers to virtually to find the right home in those circumstances where a replacement home must be identified. In many cases, we are advising a pause on home buying and selling for now. In addition to our offices being closed, here are some of the changes we've implemented.
- All new listings include some form of virtual tour, from Matterports to video walkthroughs
- A new webpage dedicated to virtual showings
- Agents have gone remote, taking classes from home and meeting clients over video chat
- Agents are available to advise remotely during inspections and closings
- Agents are working with title companies to set up drive through closings or remote notary services when available
While we lack access to a reliable crystal ball, we can reasonably predict slowed momentum during what is seasonally the Denver real estate market's busiest time of the year. A month from now, we will likely be reporting that the number of closed and under contract homes for the month of April will have dropped off considerably, while we hope that values will have held steady.
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