Denver Realtors really weren’t sure what to expect from a global pandemic. I myself had many questions about what the Real Estate Market would look like when this was all over … and a few predictions. While we are still in the thick of this pandemic, there are some things that surprised me this year … and some things that did not. Either way, we saw the average price of single family homes in Denver exceed 600,000 for the first time in Denver’s history. So what does this mean for those who are thinking about buying or selling? Let’s talk!
Have you read my August market stats post yet? If you have, you probably know that the Denver Real Estate market is not showing signs of slowing down. Pre-COVID, March saw over 4,500 homes sold. Nearly 8% more homes were sold in June than in March, and even more homes sold last month (roughly 6,500). In fact, June saw the highest number of pending contracts we’ve seen in a while.
There might be a few factors helping:
While it was clear that prices in the Denver Market were going up, Realtors were still surprised to see this jump in average price. So why this increase in price? Let’s talk low inventory.
There is very little inventory on the market right now (down roughly 31% year-over-year). However, demand is increasing. The combination of low inventory and increased demand might be to blame for the increased average price. Maybe COVID had more of an impact on the Denver Market than we originally thought!
In addition, people were spending less money during the height of the pandemic meaning buyers had more cash on hand for a down payment.