The July 2020 Denver Housing Market Update is full of power!
We knew we’d see records breaking but I am surprised by a few of these!
These housing statistics stood out the most to me:
- When we compare last year’s price and last year’s interest rate to this year’s price and interest rate: A Buyer will pay $2 less per month this year for the average priced home!
- July 2019 our average home price was $547,537.
- July 2020 our average home price is $601, 863 (this is a record).
- July 2019 interest rates were 3.75%
- July 2020 interest rates were 2.99% (this is a record)
In June we had a record number of homes under contract which made for a big month of people moving in July. That happened again in July, so August will be another big month of people moving.
On one of my many real estate market update I heard someone say, this is “the first recession in history that has made people want to move.”
By staying home, not being able to travel like we used to we found people fixing up their homes on the inside early on. As it warmed up, they started on their yards and gardens. Then it became clear, they either needed another room or two, or the needed outdoor space.
Pricing your house right, from the beginning is of utmost importance right now. The average number of showings is 5, before receiving an offer. Before the pandemic and in my 21 years of experience it has always been 18 showings. People know what they want right now, they are willing to compromise, and the inventory is low. If your home doesn’t sell within a short amount of time it is hard to recover.
I have been doing a lot of virtual showings in July and looks like more in August. Clients from all over the country gladly attend a zoom showing, or facetime showing. This gives them a feel before they get on a plane for Denver houses and condos. I’m grateful for it because it will keep our focus on what they like, when they are in town. I want to keep my personal exposure down as well as theirs. I’m still wearing gloves/masks etc. and ask everyone with me to do the same.
The Second Home markets are continuing to have record sales, people need a getaway, and real estate always has been and continues to be the best long-term investment. The luxury home and second home market are the least harmed by the pandemic.
July Inventory Comparison:
- Average: 16,584 – July (1985 – 2019)
- Record High: 31,989 in 2006
- Record Low: 6,449 in 2020
Colorado is #4 in the US of where people are migrating to.
The Denver housing market doesn’t seem to be slowing down in July or August, with the questionable school year for our youngest to the oldest college-goers, parents need space and grandparents want it as well.
People have had the summer to get clear in their minds what they want next in life. We don’t know where we are going with all this but we know, if we have a roof over our heads and we like being under that roof, life is better no matter what else is happening in the world.
If I can help you or someone you know with their next move, please reach out to me. Sometimes it takes us a week to get a house on the market and sometimes it takes a year. I have a plan for both scenarios and everything in-between.