Just The Extraordinary Facts

In Homeowners by Doug Phelps

Denver real estate is full of emotion right now. From buyers & sellers, to lenders, real estate agents, title companies, developers and builders. All are impacted by the pace and demand of current market conditions. 

In an effort to cut through the noise, we’ll stay away from emotion, opinion and prediction. Just the facts to keep you informed and make great financial decisions.   

Inventory

Current inventory levels are as low as we’ve ever seen in Denver real estate. April started with only 2,040 properties on the market and only 1,157 single family homes. These are extraordinary numbers. Last week, we finally saw a small uptick, pushing inventory to 2,419 available properties for sale and 1,511 detached single family homes.  

Housing inventory by week graph
graph for Housing inventory by week by price groups

Many people incorrectly assume that homeowners simply aren’t selling. While the number of homes listed for sale is down 7.8% year to date over 2020, total listings are almost identical to prior years of 2017 and 2018. 

The issue is demand. 

Interest Rates and Showings

Interest rates remain at or below 3% on a 30-year fixed mortgage for a well-qualified buyer. This low cost of capital, along with continued migration to Colorado and desire for lifestyle change within Colorado, are driving unprecedented demand in the Denver metro real estate market. 

As we’ve said before, one of the best indicators of demand is the number of home showings each week. 

Never before has Denver real estate seen more than 30,000 home showings in a week. Year-to-date, we’ve seen 6 total weeks of more than 30,000 showings, with two of those weeks at over 35,000 showings.

graph about total showing by week
showings per listings graph

Note: the one week of reduced showings was the weekend of our big snowstorm. 

Under Contract and Sold Home

With incredibly low inventory, one would reasonably assume the volume of sales in the market is down. 

In fact, the opposite. 

The 12,888 homes sold year-to-date, is 7.9% higher than last year and 12.3% higher than the previous 3-year average. Note: The number of sold properties this time last year most likely would not yet have been impacted by Covid and public health measures of shelter-in-place because they went under contract on average 30 days prior. Most contracts successfully closed.  

The 15,347 properties under contract year-to-date is 10.2% higher than the 2017 through 2019 average. Note: This time last year, the number of properties under contract was most likely impacted for about 3 weeks due to shelter-in-place orders and real estate shutdowns from public health orders.  

The Results

High demand with limited supply ultimately impacts price, an economic principle. The average weekly price of a detached single-family residence reached $690,769 last week, up 27.2% over the same time as last year. 

Average Price Detached homes Graph

And, for the first time ever, the average weekly price of “all property types” (Condos, Town homes, retirement community homes, plus single family detached homes) breached the $600,000 price point ending last week at $613,789, up 23.2% over the same time as last year. 

Average Price for all property types graph

Inside The Numbers at CHR

Across the Denver metro real estate market, a staggering 87.22% of all homes are selling at or above the original asking price, leaving 12.78% of homes selling below the asking price. 

Sold Price vs Original List Price Graph
Yearly graph for sold price vs original list price

At CHR, our team does a remarkable job of helping sellers prepare their homes and negotiate with prospective buyers. 96.8% of CHR sellers receive at or above the asking price for their home. And on average, CHR sellers are receiving 6.8% more for their home than the asking price!

Our entire team at CHR is thankful to our clients who give us the opportunity to guide them to these very special and successful real estate and wealth building outcomes.