Denver metro residential real estate is in a fever.
According to a new report, buyers snapped up homes nearly as fast as face masks last month. Despite the pandemic, the number of home closings soared to a record-breaking high in July—nearly 7% more than the previous high, logged in June 2017.
Even sales of “luxury” homes (properties costing $1 million or more)—which have lagged far behind other price points in recent months—saw a big jump in sales.
Meanwhile, overheated demand pushed the average price of a single-family home up to $601,862—7.68% higher than June and nearly 10% higher than July of 2019.
The news was reported in the Denver Metro Association of Realtors’ (DMAR) monthly analysis. Some saw it coming, as there were a record number of pending closings in June, waiting to be finalized in July. But that doesn’t mean there weren’t some surprises.
“We predicted the record home sales, but I don’t know anyone who predicted prices would jump up so much in one month,” stated Jill Schafer, chair of the DMAR Market Trends Committee.
DMAR attributed much of the increased activity to pent-up demand due to the COVID-19 lockdown beginning in March, when showings were prohibited. Once restrictions were lifted in May, the market came roaring back. Coupled with tight inventory in the metro area, the renewed demand resulted in sellers enjoying multiple offers, with buyers bidding at or above asking price.
National statistics showed a similarly strong market. Homeownership nationwide hit a nearly 12-year high, with refinances up 122% over last year. Home closings across the country were up 6.3% from a year ago—“a sign of how sharply the market has rebounded from its Coronavirus-related low,” notes DMAR.
In Denver, sellers had the advantage in all price ranges in July, except for condos priced higher than $1 million. Schafer doesn’t see the homebuying fever breaking anytime in the near future. She predicts another strong month of closings in August.
“While we are all wearing masks, social distancing and washing our hands to try and reduce the number of cases of COVID-19, none of those things appear to be slowing the Denver metro real estate market and it doesn’t look like you’ll see activity or prices coming down soon,” said Schafer. “It will be interesting to see if our usual fall slowdown happens this year, or at all. We will be watching.”