With June data in, we can confirm that prices are still increasing and demand is still high in the Denver real estate market. Under contract numbers in May were at record numbers and June has beat those records. The number of Denver homes under contract is up 16.25% over last month and 27.38% over 2019. Most signs suggest that the usual spring boom in sales we see has been delayed to a summer boom.
The number of home closings also broke records. For the first time in 11 weeks, the number of homes sold surpassed 2019 numbers. In June, more houses went under contract than came to market, depleting an already low inventory. Inventory is 33% less than in 2019. This makes things especially competitive for buyers. We expect this energy to continue through the summer barring any major changes to the status of COVID in the United States.
The market is slightly different for the luxury home market. The inventory of homes over $1 million on average is up for the month, but there are still fewer luxury homes on the market for the year. Prices are still increasing in the luxury market just not at the same rate as the rest of the market. Luxury buyers enjoy more choices and more time to make decisions.
In June, 57% more homes were sold in Denver than May, all without any open houses. There are loosened restrictions that will allow for open houses soon, but strict and extensive regulations may deter agents, buyers, and sellers from participating in them. We predict that most people will stick with the current situation of utilizing virtual tours first, then showing with masks, gloves, and proper sanitization.
The Denver market continues to perform well, but the market is moving quickly. Throughout the market, we are seeing increased demand, fewer choices, rising prices, and record-low mortgage rates. Make sure you have a real estate agent that is dialed into the nuances of the market and will ensure you end up in the home that is right for you.