September is historically a month that we see a natural calming of the market as buyers and sellers often decide to stay put in the Fall and Winter months. September 2020 was a different story. Once again, the Denver market saw record-breaking numbers. September had record low inventory, record-high prices and record numbers of homes under contract and sold.
In September, 5,850 homes sold and only 5,301 homes are left active on the market. Comparing these numbers you can see why the market is so competitive. In September, the median home price broke records for both single-family and condo homes at $510,000 and $334,752 respectively. We are still seeing the highest demand for single-family homes, but the condo market is far from a standstill. Well priced properties are moving quickly.
While lenders have been busy with refinances all summer, the optimal window of time to refinance is closing. Beginning December 1, refinances purchased by Fannie Mae and Freddie Mac will include a fee of 0.5% of the loan balance. This would be a one-time fee that would not apply to loans that are less than $125,000. Lenders are likely to start writing this fee into rate sheets before the end of October to account for turn times on refinances.
With the Federal Reserve indicating rates will remain low until 2024, the Denver buyer is equipped with great buying power but few choices. In a competitive market, the best weapon in a buyer or seller’s arsenal is a creative and competent broker.