Fueled by pent-up demand and record-low mortgage rates, the Denver housing market soared in June.
According to the Denver Metro Association of Realtors (DMAR) monthly market report, more homes were put under contract than came on the market for sale in June. A record number of homes (7,676) showed “pending sale status,” up 27.38% from last year. And the number of closings jumped 57.30% over May.
“Remember how fast toilet paper and personal protective equipment was selling when the coronavirus first hit the country a few months ago?” said Jill Schafer, chair of the DMAR Market Trends Committee in the group’s report. “Apparently, everyone stocked up on those necessary items because, in June, they turned to buying houses with the same level of frenzy.”
All of this was good news for sellers. By contrast, Denver-metro buyers faced familiar challenges. Most notably, they struggled with limited choices. Active listings at the end of June were at 6,383, a 10.98% drop from May and a 32.95% drop from this time last year.
Additionally, after a brief lag due to the onset of the pandemic, prices began rising again. The average price for a home in metro Denver was $509,736, up 2.06% over last year in June.
The good news for buyers is that mortgage rates are at historic lows, and they may even be able to browse more easily once again, as open houses return. Shafer notes that a recent amendment to Colorado’s public health order has loosened the restrictions on open houses. “You may be seeing those familiar arrow signs popping up again,” she stated in the DMAR report, adding one caveat: There will be changes to the usual open house experience.
“Under the new rules, gloves, masks, a social distancing calculator, log sheet and an Occupational Safety and Health Administration approved ventilation system are just some of the things required,” Schafer commented. “Once real estate agents review all of the new rules, they may decide to keep their open house signs in storage.”
And so it goes in our contagion-wary world.
We are all still bracing for the ongoing effects of the pandemic. But for now—gloves, masks and other requirements aside—at least Denver’s residential real estate market is alive and well.