In October in Denver, the market tends to slow down as the weather cools off, but not surprisingly, 2020 was a little different. The record-low inventory continues with only 4,821 active listings. This spring’s pent-up demand continues to have a lasting impact on both inventory and sales prices. With the inventory now at this new record low, buyers in the market are finding it more difficult to find homes while new buyers continue to enter the market. Another contributing factor is that some sellers are still following the usual seasonality of the market, while buyers are still looking for homes. This combined with economic and public health uncertainty is leading to lower inventory while demand remains steady.
The competition for homes resulted in another record high for average sales prices in October. October sales data indicates record-highs for both single-family detached and attached properties at $625,100 and $393,733 respectively. This increase in average sales price is also fueled by still low-interest rates that maximize the buyer’s buying power.
It is important to note, that this competition by no means indicates that the market is at a full stop. Many transactions are happening faster, with fewer days on the market, and with faster closing timelines than we have traditionally seen. There were 5,984 closed transactions in October and at month-end, there were a record, 6,141 pending transactions, promising a busy November in Denver.
As winter approaches, we expect the market to continue moving on. This means our COVID safety protocols will remain in place. Some examples of these include no overlapping showings, masks worn at all times, limiting the number of people at each showing, and of course, social distancing. These precautions are taken industry-wide from the first showing to closing.
If you are wondering what this means for you, reach out for a tailored market analysis. The right broker can creatively navigate this unprecedented time and make sure you are in a home you love.