Real Estate Market In Metro Denver Seeing ‘Increased Demand, Few Choices’

July 3, 2020
The Associated Press
Buyers are flooding the metro Denver real estate market now that in-person showings have resumed, but the inventory is low.

Homes sales in metro Denver rose in June amid scant inventory. 

The number of closed transactions surged 57.3 percent compared to May, according to the Denver Metro Association of Realtors. That still marks a decline of nearly 7 percent compared to the same time last year. The average home price of $509,736 reflects a 3 percent increase from last month, and 2 percent relative to 2019, the report found. 

Stay-at-home orders that kept potential buyers in their homes froze Colorado’s real estate market in March. Buyers are flooding the market now that in-person showings have resumed, according to Jill Schafer, chair of the association’s trends committee.

“We are seeing increased demand, few choices, record-low mortgage rates and rising prices,” Schafer said in the report. 

The rules for open houses are looser but could still pose logistical challenges, according to Schafer. The state issued new guidelines that require a social distancing calculator and a ventilation system approved by the Occupational Safety and Health Administration, Schafer said. 

The number of listings is plummeting, which puts pressure on buyers to act even during the  economic uncertainty created by the COVID-19 pandemic and concern that businesses will have to shut back down. Active listings were down about 33 percent last month compared to the same time last year. They fell 11 percent from May, the report found. The average number of days on the market is unchanged at 24, the data show. 

The luxury segment — defined as homes priced at $1 million and above — is lagging the overall market. Closed transactions in that price range fell 15 percent from the same time last year, according to the report.

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