Denver Housing Market Trends: November 2020 Update
November 2020 saw a continued exacerbation of the records already set in motion earlier this year. Days on market (the amount of time a home sits on the market before going under contract) decreased dramatically, prices increased 13 percent from last year, and the number of active listings dropped to a record-setting 3,415.
Across the country, we are seeing unorthodox low mortgage rates drive an unrestrained amount of demand. Pending home sales did fall a slight 1.1 percent month over month nationally but were up 20.2% year over year, and in Denver they also fell by a little more than 1,000 month over month but were up from last year. Seasonality, buyer burnout due to lack of inventory, and rising prices all play a role in the number of pending homes decreasing.
The average close price of all homes (attached and detached) in November 2020 was $549,756, up 13.12 percent from November 2019. The average close price of single-family detached homes alone jumped an even higher 15.51 percent to $615,766.
The average close price of all homes (attached and detached) in November 2020 was $549,756, up 13.12 percent from November 2019.
Typical of seasonal trends of years past, we should see the amount of available homes increase this spring. If you are looking to buy but want to wait until you have more options, reach out to Usaj Realty and there are steps you can take now to set you up for success in early 2021.
A Quick Glance at the Numbers:
| Days on Market | Avg. Sold Price: Single Family Home | Avg. Sold Price: Condo | # of Homes Active | # of Homes Sold | # of Homes Pending | Avg. Sold Price Change YOY | |
| Nov. 2018 | 31 | $505,990 | $358,447 | 7,530 | 3,732 | 3,964 | + 6.47 % |
| Nov. 2019 | 35 | $537,624 | $365,856 | 6,988 | 3,935 | 4,417 | + 6.76 % |
| Nov. 2020 | 22 | $615,766 | $391,390 | 3,415 | 4,820 | 4,796 | + 13.12 % |
Source: DMAR
During these unprecedented times, Usaj Realty would love to carefully assist you with finding your next place to call home, or selling your current property. Our acumen, attention to the market and negotiation skills will all go to work in order to advocate for your goals. Email us at info@usajrealty.com or call 720.398.2999. We measure our success by the happiness of our clients!
Housing Market | Sold Prices and Active Listings in Metro Denver:
Stats below include data for Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties
Headlines: What’s Happening in Denver
Metro Denver’s housing market has staying power, but it will need to get through a bumpy winter
“Metro Denver’s housing market seems unstoppable, setting record after record in the resale market and leading the country for the gain in pending new home sales. But the rising tide of COVID-19 cases and the economic disruption they will trigger are raising concerns about the staying power of the housing recovery both here and across the country.”
Denver’s average single-family home price surpasses $625,000 for first time
“According to the Denver Metro Association of Realtors (DMAR) Market Trends Report, the average single-family home sold for $625,100 in October—breaking July’s record when the price exceeded $600,000 for the first time. The average price for a single-family home jumped 18 percent year-over-year from $529,554 in October 2019.”
What’s it like to shop for a home in “the toughest market to buy a house in Denver metro history”?
“They set a budget of $400,000 and, guided by Usaj Realty’s Kristina Casinelli, a broker they had kept in touch with after first speaking with her in 2018, began searching…Casinelli said the couple was competing against people who were able to put down cash or were willing to take such steps as waiving inspections. She had clients who, after getting a taste of the market, decided to wait until spring in hopes that more inventory would be available…She counseled the Strats to focus on houses that had not sold the first weekend. They found one in Westminster that had been on the market almost a week. They visited on a Wednesday and offered the asking price of $417,000. “A deal these days is list price,” Casinelli said. After looking at 40 houses and making a half dozen other offers, the Strats had a home.”
Buyers favored bigger suburban homes during pandemic
“Multi-generational homes are absolutely a local trend in Denver, but it’s much harder to find these homes because they are often far outside the average price range,” said Jenny Usaj, owner and broker of Usaj Realty in Denver. “People are more willing to go move outside their initial target location — or neighborhood entirely — to find a home that has more space to accommodate their children and parents.”
Homebuilders in metro Denver on track for an unexpectedly stellar year, despite pandemic
“Facing a slim inventory of existing homes for sale, Denver buyers are snapping up new homes at the fastest pace in the country, a rebound so strong that it has caught local builders off guard.”
Headlines: What’s Happening Nationally
Even with low inventory, expect a strong 2021 housing market
“Even prior to the pandemic, housing inventory had hit record lows, and the problem has only gotten worse as demand continues to rise. Total home sales are outpacing new listings by a wide margin every month, and real estate tech company Homesnap foresees the shortage continuing in 2021 unless more sellers enter the market.”
The downside of the hot 2020 housing market: rapid home-price growth
“Demand for housing was strong in early 2020, before the COVID-19 crisis hit. Mandated shut-down measures and the fear of what COVID would do to our economy temporarily immobilized the housing market, evinced by nine weeks of declines in the weekly purchase applications data on a year-over-year basis. Then it was as if the Housing Demographic God exerted her chronokinetic powers to snap demand back to pre-COVID levels of growth. The frozen market thawed and resumed its steady pace of growth, even making up for lost time.”
October pending home sales fall unexpectedly, as high prices take their toll on buyers
“Pending home sales fell 1.1% month to month in October but were 20.2% higher compared with October 2019. This reading is a measure of signed contracts on existing homes, so it is a future indicator of closed sales.”
– CNBC
Home prices are rising everywhere in the U.S.
“Home prices rose in every corner of the U.S. during the third quarter, as the pandemic boosted activity in a way not seen in recent history. The median price for existing homes in each of the 181 metro areas tracked by the National Association of Realtors was higher in the third quarter from a year earlier, the association said Thursday.”
Report for November 2020:
Read Denver Metro Association of Realtor’s full report on last month’s Real Estate trends and statistics in Denver here.
And as always, please let us know if you have any questions!
Whether buying or selling, Usaj Realty is dedicated to helping you stay competitive. Your Usaj Realty broker will communicate effectively, learn your goals like the back of their hand, and work closely with you to negotiate the best terms possible, and expertly manage your transaction from start to finish, ensuring peace of mind.
Email us at info@usajrealty.com or call 720.398.2999.
