Denver Agent Content: Blog Posts

Will the Denver Real Estate Market Cool Down this Fall?

Article Photo:
Article Summary:

The Covid-19 pandemic Denver real estate market has been in high gear since the Stay-At-Home order was lifted. Home prices continue to increase while home inventory falls to one-half the level it was a year ago. While Denver faces affordability concerns, will the hot real estate market continue to the end of the year?

Article Details:

Original Publishing Date:

October 6, 2020

Written By:

Jim Brown
Post this page to:
Share on facebook

Full Article:

Photo and Photo Credit:

As we slowly return to some sense of normalcy after the economic shutdown, the Denver real estate market continues to scream along. Through the height of the pandemic, home sales slowed but never stopped. As soon as the Stay-At-Home order was lifted, Denver real estate sales took off for a wild ride.

The 2020 Spring buying season was interrupted by the Covid-19 shut-down. Home sales typically surge in April and taper off at the end of the summer. This year has clearly been different. The selling season started late and has continued strong into the Fall. Some reports suggest home sales will remain high to the end of the year.

Looking Back
Like a flashback to 2015, we are sitting in the middle of a seller’s market with buyers battling over the limited inventory. While sellers maintain control of the market, prices continue to rise, and buyers contend with the frustration of competing for a limited number of available homes.

What’s the difference between today and five years ago?

Denver’s population has been on the rise for several years. The climate and weather are tough to beat. Sunshine for more than 300 days of the year and the incredible Rocky Mountains, full of beauty and recreation, offer a myriad of reasons to come here and stay. With all of the positive aspects that Denver has going for it, it’s no surprise we’ve seen a constant increase in the population.

Starting in 2013 the economy was picking up and for several years Denver was one of the top cities to live in. With the sudden influx of new residents, builders were caught flat and were well behind the curve in keeping up with the housing demand.

Today, the combination of the pandemic and social unrest has people on the move again with Colorado being one of the preferred destinations. This influx of new residents is finding more new construction available, but fewer existing homes for sale. In September there were 5,120 single family homes listed in the Denver Metro area, half of the 10,714 available a year ago during the same time period.

Prices Go Up, Interest Rates Come Down
The other contributing factor to the buyer demand are the historically low interest rates. As prices continue to rise with the demand for housing, the falling interest rates have helped to keep home prices in an affordable range. There seems to be no hint that interest rates will rise, maintaining the unprecedented low rates for another year or more. In fact, it has been predicted that rates could possibly take another slight dip.

Home prices have continued to increase, setting new records in Denver. The medium price for a single family residence is now $493,250, a 14.4% increase from this time last year. As long as the demand for homes continues, prices will stay strong.

As real estate prices climb, Denver faces an increasing affordability issue. Colorado used to be the affordable alternative to the East and West coasts. While we have net population gain, affordability is one of the top issues and a leading factor in reasons residents leave the state. Buyer demand is what is currently keeping home prices at these levels, and pushing them even higher.

Looking ahead, when the buyer demand subsides, home prices will almost assuredly level off and retreat. Given the current conditions, and with no additional pandemic surprises, January 2021 could reset and see the return to the normal real estate season.

Please use this text to give credit to the photographer or source of photo.

"By The Numbers" Graph

Published Date: October 6, 2020

With Denver home prices at new record levels, sellers are still sitting on the sidelines and not listing their properties. The number of single family homes for sale in the Denver metropolitan area is down to one-half of the levels we saw one year ago. The decline in available inventory has played a big role in pushing home prices higher.

How Long will the Denver Real Estate Market Boom Continue?

After the economic shutdown from the Covid-19 Pandemic, the Denver real estate market appeared to be in a perilous position. Talk of the imminent collapse of the housing market was bantered about for a while. The question being asked was when the housing market would crash, not if it would crash.

Read More »

Colorado Real Estate Goes Online Part 2 of 2: Are There Pitfalls with Progress?

In Part 1 of this series we looked at the adoption of online notarization as an alternative for completing a real estate transaction during the pandemic and subsequent lockdown. Colorado Governor Jared Polis implemented an executive order, approving the use of online notarization and the State Legislature subsequently passed a bill essentially making the executive order permanent.

Read More »