Denver Metro Real Estate Continues All-Time Records as Demand for Home in COVID-19 Increases

With months of inventory dropping to an even more historic low, the most coveted gift this holiday season is a new home.

In November, the Greater Denver Metro housing market continued to boost all-time records, with median days in MLS for detached single-family homes at a very speedy five days, representing a tie of the lowest number on record, having seen five days only five times ever before.  

Active listings for both attached and detached single-family homes came in at 3,415, surpassing the previous low set in December 2017 of 3,854. There was additionally a record-high for November average close price for combined single-family detached and attached properties, and detached single-family homes at $549,756 and $615,766 respectively. The previous record for combined single-family detached and attached properties was in 2019 at $486,012. 

While the holiday months do generally see a decline in inventory, months of inventory this particular November hit another record-low at just .71, easily beating October 2020’s former lowest record at .81. For the single-family detached market, Denver only had 1,755 houses currently available for sale, representing just .51 months of inventory. This means, in theory, if no houses were put on the market for two weeks, there would be nothing left to sell.

Why Should I Sell Now?

Sellers are in the same boat as buyers right now. "Should I sell now? Should I wait? Should I downside?" 

To answer this question, let's check out objectively what is going on in the market from a seller's perspective:

1) The number of homes for sale are down 39% since last year, which means thoughdemand from buyers is UP, supply is DOWN. 

2) The absorption rate is at 4.4 months, which again means there is less inventory than demand. A balanced market is 6 months, anything below that means it is a seller's market.

3) With interest rates so low, many buyers are in the market right now, which means more competition, exposure and demand for your house. There are multiple offer wars ALL over the Denver-area right now. I know, I have been in 3 of them in the last 2 weeks!

4) Average "days on market" are also down 14% since last year, which means houses are selling faster. 

5) If you are selling in order to downsize (or upgrade), it is a perfect situation for you to buy (see all the "Reasons to Buy" above!).  

All these reasons are objective reasons from the market and what is actually going on in the field. Verdict is: It can't get much better to buy or sell right now!