Prices, contracts shoot up in June as 2020 sees a robust summer-selling season
The real estate dam began to let a flood of activity through in June, after months of stifled sales due to Covid-19.
June saw a record number of Denver metro homes go under contract. The 7,676 listings that went pending in June represent a leap of 27.4 percent from June 2019 and 16.3 percent jump from May, according to the latest Denver Metro Association of Realtors stats.
As some of the coronavirus freeze melted, the market saw a rush of closings. Some of these represent delayed closing at the height of the Colorado stay-at-home order, but the number also represents pent-up demand.
The pandemic, obviously, wreaked havoc on a usually busy real estate spring selling season. It continues to influence many potential sellers’ interest in actually putting their homes on the market, which has held inventory levels very low.
This single-family gem located in Hilltop listed for $950,000 represents one of Denver metro’s most in-demand — detached homes between $750,000 and $1 million.
Even with the 7,364 new listings that hit the Denver metro market in June, inventory still declined — 33.0 percent from June 2019 and 11.0 percent from May. That means sellers remain in the driver’s seat and that prices rise.
Average prices approach all-time highs
In fact, average prices of homes sold in the 11-county Denver metro jumped above $500,000 in June for just the second time to $509,736, up 2.1 percent from a year ago. March, with an average sale price of approximately $513,000, represented the first time metro home prices passed the half-million mark.
The average price of Denver metro homes jumped to a near all-time high in June. Source: Denver Metro Association of Realtors.
Denver real estate still an inventory story
The Denver metro real estate story still centers on inventory. Six months of inventory (MOI) represents a balanced market between supply and demand.
A quick look at the June inventory stats below reveal just how dominant low inventory stands in the market. Only one segment of Denver metro homes — attached homes priced over $1 million — represent a buyer’s market, where supply outstrips demand.
June stats show just the extent of Denver’s a seller’s market. Source: Denver Metro Association of Realtors
Active listings at the end of June in the 11-county Denver metro, 6,383 dropped 33.0 percent from a year ago, and just 11.0 percent from May. The numbers for single-family homes show even starker — down 40.4 percent from a year ago and 13.6 percent from May.
On the ground, I’m seeing increased demand for homes amenable to quarantine — those with outdoor spaces, home gyms and home offices. Time will tell if these desires will last, but Covid-19 taught all of us to look at home with new eyes.