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August breaks record for number of homes sold that month

by | Sep 3, 2020 | Blog, Denver Real Estate Market | 0 comments

After a record-breaking July, the Denver-metro home market continued to mirror the weather: hot, hot, hot.

According to the monthly report from the Denver Metro Association of Realtors (DMAR), August logged the most sales—5,959—for any August on record.

While the number of sold homes actually dropped 18.73% from July— another record-breaking month for sales— that’s only because there were fewer homes on the market to buy. Active listings were down 14.78% from July.

“If there were more, we would have sold more,” said Jill Schafer, chair of the DMAR Market Trends Committee. “Unfortunately, there weren’t a lot more homes put up for sale in August. The active listings at month-end showed how desperate things looked.”

There were 5,496 active listings at the end of August, compared to an historical average for that month of 16,550. The scant number of homes available meant buyers were pitted against each other in bidding wars, raising the average cost of a home to $542,784—.99% higher than the cost of a home in July.

If you look at detached homes only, the average cost rose at an even higher rate, up 1.51% from July and 5.56% from a year ago, to $606,330. This price broke the previous record set in July.

“If you were looking for a deal, you were out of luck,” noted Schafer. “On average, homebuyers paid more than full asking price for single-family homes and nearly full price for condos. There was not a lot of room for negotiations when multiple buyers were competing for the same home.”

“If our current trends continue,” added Taylor Wilson, also a member of the DMAR Market Trends Committee, “COVID-19 may have just been a blemish on our year-end figures, as the Denver-area market is insulated by strong population growth, a variety of industries and quality of life that isn’t going anywhere,”

Markets across the country are also booming, The national median home price rose to $304,100 in July, the first time it’s ever broken $300,000, according to the National Association of Realtors.

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