If April proved anything, it's that the buyers and sellers in the Denver real estate market are extremely adaptive. It was an interesting and challenging time to be buying and selling homes, with mandates from state and local officials changing often and becoming more stringent throughout the month, leading up to a complete ban on in-person showings for 17 full days. This didn't deter serious buyers and sellers or creative Realtors who still found a way to help 3,280 buyers to contract through a host of virtual showing options. In-person showings resumed on April 27th, making it the highest Monday for showings so far this year and proving that the Denver real estate market is also incredibly resilient. While there was a significant drop in activity for the month of April, the impact wasn't nearly as extreme as forecasted.
Home Values and Days on Market
Many buyers and sellers put their home goals on pause for the month of April, while serious buyers were flexible and willing to do what it takes to get into their next home, even when home shopping became a little more difficult. Median days on market for both detached and attached homes fell below one week, with buyers quickly scooping up the few listings on the market. Detached home values held steady year over year, while the attached market reported a 3.65% gain.
Denver Remains a Seller's Market in Most Segments
Despite the extreme showing restrictions, Denver remains a strong seller's market with just 1.6 months of inventory throughout the seven-county metro area. By contrast, a market in balance would need six months of inventory. April closings delivered an average of 99.96 percent of the asking price for Denver area sellers, demonstrating that even during a pandemic, Denver homes are holding their market value. While we are still seeing plenty of competition at lower price points, the one segment of the market that has shifted towards balance between buyers and sellers is the luxury market (over $1M) which was impacted by both the stock market and the availability of jumbo loans through the big banks. If you are considering a purchase in the luxury market, there are still local lenders servicing larger loans and your Live Urban Real Estate Agent will have a recommendation for you.
Where we're headed
While we're unsure what recovery will look like or the trajectory of the pandemic, the Denver housing market remains stable for now. Typically we see buyer interest drop off in the summer, but this year could prove to be different with vacations and festivals canceled and pent up buyer interest coming off the sidelines. Interest rates are still at historic lows and the summer tends to usher in new listings for buyers to choose from. We will be keeping an eye on the numbers to see if buyers will continue to absorb inventory at the same rate that new homes hit the market, or if we will see the months of inventory number creep up.
When circumstances threatened to bring the real estate market to a halt, the industry responded by adapting quickly to meet the needs of buyers and sellers in the Denver real estate market, keeping their home goals on track, and shifting the way we do business. Virtual home tours are here to stay and may become the new norm, forever changing the way that buyer's search for homes. This could mean fewer showings moving forward, as buyers have been trained to do their first showing from their own living room. We are grateful to be able to continue serving our buyers and sellers while doing our part to abide by all city and state directives to keep the community safe. We're all in this together, Denver.
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