As we approach the peak of summer heat the Denver market has also continued to heat up. July saw record-breaking demand, limited inventory, and prices. More homes closed in July 2020 than any month ever in the Denver Metro area. You can credit the continued pent up demand that continues to be fueled by low inventory. Denver inventory isn’t just kind of low, July saw the least amount of active listings in Denver ever. Sellers are seeing multiple and sometimes, over list price, offers on their listings when they hit the market appropriately priced.
These factors contributed to the next record set in July; the highest average price ever for a detached single-family home, $601,863. One interesting note about this statistic is that while it is significantly higher than last July, and along with the record low-interest rates, this actually means that overall buyers are paying almost exactly the same monthly payments.
The luxury market saw a significant spike in activity in July. Attached luxury homes are not experiencing quite the same level of competition, but still saw a 50 percent increase in closed homes from June.
When we look at these numbers it is obvious that Colorado is fairing amazingly well in dynamic financial times, but what can be credited for that? According to a new study by SmartAsset, Colorado and Washington were seeing influxes of millennials from states like New York, Illinois, and California even before the pandemic. While the most up to date data is difficult to find, anecdotal evidence makes us confident that wealthy people are flocking to cities that give them more space, but still have robust city structures. Even with record-high real estate prices in Denver, buyers from markets like New York and San Francisco can afford much more space in Denver than their previous cities. On the other end of the financial spectrum, sadly this causes many buyers to be pushed out of the market by these high prices.
The Denver market in July remained fast-paced and competitive with very few signs of letting up. Look for an increase in inventory or interest rates before the outlook will change much. Don’t let a competitive market scare you off though. With the right broker on your team and interest rates on your side, you can still get into the market.