Big Shift in Real Estate?

In Homeowners by Doug Phelps

SUMMARY

We are seeing aspects of the market understandably respond to job loss, the shelter-in-place order and economic challenges.  At the same time, we are seeing signs of consumer adaptation and continued strong market activity fueled by positive aspects of the Denver economy and real estate market.  

So has there been a BIG shift?  

No, not just yet.  

Relatively speaking, activity remains strong in the Denver market.  Buyers are capitalizing on low interest rates and many sellers are seeing strong offers due to low inventory.  We’ve seen modest shifts in inventory levels and a more marked decline in the volume of homes going under contract, but the market seems poised for a solid rebound, pending variables of when the Colorado shelter in place order will be lifted and how that restarts the local economy in the face of US economic challenges.   

SNAPSHOT

  • # of showings per property has declined by only 5.8% over the last 7 days.  The price range of $250,000 to $999,999 averages 3.2 showings per week, where the price range of $1,000,000 to $2,000,000 averages closer to 1.4 showings per week.
  • 8.8% increase of Single-Family Home inventory in the last week, but 10.4% lower than at the same time last year.  
  • 28.3% decline in the number of homes under contract last week, compared to 4 weeks ago.  Only a 6.4% decline last week over the previous week. Total of 787 homes under contract last week.
  • # of new listings last week, 1,187, is almost identical to the last 3-year average of 1,215. 
  • 33% increase in average days on market for listings, moving from 13.77 to 18.31.  Still 30% shorter marketing time on average than the same time last year.  
  • Total number of homes sold in the month of March, 2020 is right at the average volume of the last 3 years.  
  • Now taking only 11.2 showings on average for a home to go under contract in the $250,000 to $999,999 price range, down 46.7%.  Only taking 9 showings on average to go under contract in the $1,000,000 to $2,000,000 price range, down 59.1%. NOTE: the numbers in the higher price ranges are not as statistically meaningful week over week because of the smaller number of total properties available and analyzed.  

TO SEE ALL CHARTS CLICK HERE

GOING VIRTUAL

The biggest shift we have seen in the Denver market is in buyer and seller behavior.  The number of buyers and sellers active in the market remains very strong, but through adaptive methodology.  

Buyers are spending more time researching and planning through online viewing of homes and neighborhoods, narrowing down properties, looking critically at things like schools, trails and other neighborhood and geographic amenities.  

More sellers are showing their homes virtually and being flexible to the nature of offers received by buyers, which includes longer time frames for inspections, appraisals and other contingencies.

WE HAVE YOU COVERED

We have a complete suite of digital marketing resources and virtual showing capabilities.  If you have real estate needs now and are wondering if you can gain proper access to homes or get effective exposure when selling, let your agent walk you through the options to set your mind at ease.

If you would like some assistance assessing your current situation give me a call at  (720) 323-4176.

This article was originally posted here on the Colorado Home Realty blog.

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