As in-person showings screeched to a halt in April, Buyers became comfortable with virtual showings pretty quickly. The average days on market for sold properties in April was just 20 days. This tells us that appropriately priced homes are moving quickly regardless of being shown primarily through a screen.
April also showed only a small dip in the average sales price for homes, down less than 2%. Most of the price cuts were isolated to the luxury market and in our experience homes at the $700,000 and below price point are holding their value.
The slow in showing activity did, however, decrease the total amount of transactions in the month. This is actually causing a spike in inventory. We expect home buyers who have been on the hunt for some time to see more choices than before.
For first time home buyers, economic uncertainty is triggering lease extensions but also giving buyers motivation to seek more space to spread out while social distancing. We’ve also seen an influx of rentals as Airbnbs transition to traditional longterm rentals while the tourism economy in Colorado idles.
This is all to say that while we and our neighbors are grappling with the economic impact of COVID-19, the market in Denver remains strong. In-person showings have returned but we expect virtual tours to remain an important piece of the home buying experience.
If you have any questions about how the current events have affected your home value or the value of homes you are looking to purchase, we would love to help. We are taking this season day by day and implementing strategies beyond what is state-required. Our clients and their safety will always be the number one priority.