In the past several years, the Denver region has been experiencing a shortage of housing due to an immense increase in population due to the increase of job availability and an exceptionally strong economy. This has resulted in an increased demand for housing in and around the area.
Despite the fact that the nation has been hit hard by the current COVID-19 pandemic, the housing market has shown signs that it is heating up. This comes amid the fact that there is only a small amount of housing inventory available and that the mortgage rates have hit an all-time record low. If you are an investor, now is the time to consider tapping into the Denver real estate market. Continue reading more Denver Real Estate News.
Statistics Prior to the Pandemic
In January of 2020, there were immense gains in housing inventory in and around Denver. From December 2019, new listings emerged at a whopping rate of 89.27%!
In terms of the residential market, the number of homes that were closed dropped to 35.19%; however, this is a common decline that is typically seen at the beginning of the New Year.
Condos dropped at a rate of 4.98%. This drop resulted in a reduction of overall costs to an average of just above $355,000. This was the first time in over a 4-year period that condo prices dropped.
At the start of 2020, the housing market displayed few signs of any type of gains.
By the Month of March, the housing market in and around Denver was displaying signs of immense growth.
When fears rapidly started spreading due to the newly-emerged coronavirus spreading throughout the world, just over 750 sellers actually pulled their homes that they had for sale completely off of the market.
Still, though, over 30% new listings were added. However, between March of 2019 and March of 2020, there were 8.20% less homes actively listed.
The good news was – despite the pandemic, homes were still selling at a rate of every 29 days. In fact, there were just over 12% more homes being sold.
The average price of each of the homes designed for single families ranked in at just over $513,000. This meant that the selling prices of homes between March of 2019 and March of 2020 went up by a total of 7.31%.
This was actually a new high – in terms of records.
The next record was that the combination of condos and homes for single families increased to over the mark of a half-million dollars. The sales from that time period averaged over $500,000 to over $749,000.
The Impact of the Pandemic
While the pandemic was in full swing in the earliest days of the nation-wide shut-down measures put into place by the Federal Government, home prices continued to rise immensely.
Average residential homes went from about $500,000 and topped the $513,000 mark. In the months of April and May, the prices did – in fact – go down a bit; however, it was attributed to the fact that there was a bit of uncertainty – in terms of the economic impacts of the shut-down – during that time.
In some areas, these prices went as low as $300,000. In others, they were just under the $500,000 mark.
Despite this, the average sales were higher in April 2020 than in April of the previous year.
In May, a total of 3,437 different home sales were closed. This led to a total overall decrease of 44% from the same month in the year of 2019. There was also a 13% decrease from the Month of April.
The pending listing status was active at a total of 6,935. That total was up by 14%. Due to the low number of homes that were active on the market during this time and the low associated prices, sellers were able to sell very quickly. In terms of condos and multi-family homes, the prices escalated a total of 4% from the same time the previous year.
By June, prices went up a total of 3% from May and 2% from the previous year. Just under 6,000 homes were closed, which allowed for an increase of 3% from 2019. The sales increased a whopping 69% from the Month of May.
Single family units averaged a total of $559,290. Condos and other types of multi-family units averaged $370,180. Active listings were down by 31% in comparison to the year of 2019 and they were 8% lower than that of the Month of May.
Multi-family units were on the market for an average of 29 days and single-family units were on the market for an average of 23 days.
The median number of days remaining on the market was unchanged from June of 2019.
The Future Forecast
Generally speaking, the Denver real estate market is one of the best for investors. The area is known for having a high level of appreciation.
2019 was the 8th year that the area had very high gains, in terms of price. In the past year, there has been an appreciation of only 1%. While this is only an increase of 3% from the year of 2018, it is also an increase of 90% from the year of 2010.
As of right now, it is considered to be the real estate market for buyers. This is due to the fact that the lack of demand has ever-slightly decreased, which makes terms more negotiable for those interested in buying.
It is expected that the prices of homes may be flattened by a percentage of 1.7 within the next year.
This comes in direct correlation with the current pandemic, which is also having a detrimental effect on the real estate market throughout the entire span of the United States. Various analysts are seeing the potential for a positive trend for investors, though. I
t is expected that home values will increase dramatically – especially in the year of 2021. The long-term effects that you experience should be positive.
In order to ensure that you maximize on this amazing opportunity, you should go in now and negotiate for reduced pricing on homes that are for sale. True, you will need to wait before selling the property once you purchase it, but at the current rates, you could – potentially – double your profits within the next twelve-month period.
A home that you buy now for $300,000 could sell in a year for $600,000. Yes, it is true that you may have to wait just a little while, but the potential for future profits are absolutely immense!
We Can Help
We here at Pioneer Property Management specialize in the Denver real estate market the current Denver Real Estate News. We keep a comprehensive list of all available properties and can assist all investors in identifying the absolute best property for their dollar.
In addition to this, we offer a multitude of unique services that will help you secure the property, maintain the property, and if you decide to sell, to get the top dollar for that property.
We also specialize in services for rental property owners. We can help secure the best tenants and handle all of your rental property needs.
If you would like to learn more about what we offer and how we can assist you on all of your real estate investment endeavors, we encourage you to call us today and talk directly to a professional today: 720-839-7482
