Is There Any Chance Home Prices will Fall? Many California,…
Home and Condo Sales Rocketing
June was an exciting return of the housing market in Denver. Pending homes sales rose 16.25% or 7676 homes.
The experts feel there is no slowdown in the Denver real estate market just more choice, low price gains, and 7364 more homes were listed last month. Inventory is down again 11% and the price in Denver rose to $509,736. Closes grew 57%.
Sales high priced luxury homes dropped dramatically year over year as did homes priced in the lower tiers. Sales of homes priced in the $500,000 to $750,000 tier grew 69% over last month.
Yes, the easing of the 2020 pandemic is allowing homebuyers to follow through with home purchases in the Metro Denver region.
As you can see in the report, home sales rose 57%, while the active inventory shrunk, as it has in most housing markets, allowing prices to rise 3% from May.
Market Report for June 2020
In the Denver Metro Association of Realtor’s Denver housing market report, new listings were up 10.3% month to month for single family homes and 19.5% for townhouse-condo properties. Median sold prices dropped 0.7% to $417,500 for single family, and were down .7% to $298,000 for townhouse-condo properties. Days on market increased 18.4% for single family homes and 9.1% for condo properties.
Denver Housing Data year over year snapshot
Denver Home Buyers Coming Back!
Where did all the homebuyers go? First of all, they didn’t have enough funds to buy. Secondly, they want to see if prices will begin to crash. At least they hoped so. There are plenty of millennial buyers but they can’t afford current home and condo prices. They’re struggling with their rents.
Townhouse Sales Stats for May 2020
Average Home Sales Price for May 2020
Denver New Listings: Fewer Houses for Sale
For me, the new listings report tells more about the health of the market and where Denver home prices are going. New listings dropped to 5120 units in June from 6678 in May, while townhouse units dropped to 2244 listings from 2315 units in May.
Looking for stats on Los Angeles housing market, San Diego housing market, Houston housing market or on California’s housing market? Stay up on what’s happening in Miami, Tampa and the rest of the Florida housing market.
From July 2017 to July 2018, 80,000 people moved to Colorado revealing it as one of the most desirable places to work and live in the US. Denver and Colorado’s oil market and tourism markets have been hit hard. The economy has improved a little this month, and 2021 is on everyone’s list as the time the housing market should fully recover.
The city’s low unemployment rate, higher wages, and high job growth were factors drawing new people here. And it had become one of the nation’s hottest trending markets and perhaps one of the best places to buy a home.
In early 2018, the Denver housing market started strong then fell as economic forecasts became gloomy. One wonders if that dramatic swing might be a prelude into a crash if the national economy falters?
Yes, the growth curves have been some of the nation’s steepest, but what happens on the backend if the economy should take a dive?
The economy is holding, yet sales are slipping. Denver has plenty of nice neighborhoods, yet buyers aren’t buying even as supply of homes doubles.
What Drives Denver’s Housing Market?
Key drivers of supply in Denver include: developable land shortage, materials costs, local and state building regulations. Although some buyers are relieved at lower prices, the long term solutions for more afforable and available and desired types of housing remain suppressed. This situation may lead to prices beginning to climb along with the robust Colorado economy.
Colorado is second best for jobs and the fifth best state economy. Unemployment was at 3%, bolstered by the energy sector, however, President Trump has stated a preference for lower oil prices. That raises the correction risk for Denver housing if oil should fall to $40 a barrel. The Houston housing market would be similarly effected by a negative price forecast.
Best time for sellers to list their properties is April, May and June to access the highest periods of buyer demand. Quite a few sellers are beginning to exist desperate responses fearing a housing correction amidst US political and trade issues.
Now that interest rates have flattened and with lots of inventory, we could sales pick up in Denver. Millennial renters have more money saved and are still expressing interest in buying a home or condo. Many buyers are holding off on buying with the belief that prices may collapse further. Your realtor will need to deal with these objections.
January Sales Down and Listings Skyrocketing
In January, new listings were up 13%, active listings were up 52% from last January and DOM is up an astonishing 125%. Sales volume is down 12% over the last 12 months.
In the Denver luxury market (single detached above $1 Million) sales slumped 31% from December, and were down 15% from last year. DOM jumped by 26% from last year. However the luxury condo market has done better. Sales volume was down 21% from last month, yet prices jumped 94%. DOM grew substantially in January. Given the low volume of sales, the average prices may not be relevant.
The forecast for home prices in Denver is to rise despite slowing sales and increased listings.
Zillow sees prices rising by another $17,000 by January 2020. Yet for many sellers, it appears properties will stay on the market quite a while longer. You’ll need a good Denver Realtor to sell faster. Now may be the best time to sell.
Despite flagging sales, the rental market in Greater Denver is still strong. Average rent prices are holding at above $2100 a month.
What Are the Best Neighborhoods in Denver?
Spacewise Storage offered up its top 11 neighborhoods in Denver. They’re as follows:
- Cherry Creek
- Congress Park
- Greenwood Village
- Hampden South
- Indian Creek
- South Park Hill
And Homesnacks chimes in with their list of best neighborhoods:
Here are the best neighborhoods in Denver:
- Cherry Creek $663,500
- Washington Park $537,873
- Golden Triangle $418,600
- Lodo $441,900
- Central East Denver $416,967
- University $546,855
- Stapleton $469,300
- Southeastern Denver $277,859
- Park Hill $366,040
- Highland $382,556
That’s a look at Denver’s housing market data, and forecast. Please do bookmark this page and share it. People like to know more about Denver, and the influx of immigrants is what supports home prices in the region.
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