It’s an understatement to say 2020 was brimming with challenges and surprises. Real estate brokers, buyers, sellers, and service providers alike adjusted and adapted in the face of a global pandemic. Like me, you are probably eager to visit with friends, family, and enjoy the many pleasures of life we all missed after a tough year. If home buying or selling has been on your mind lately, I would love to set up a time to discuss your goals and options.
Q1 2021 Real Estate Newsletter and Market Insights
Housing has shown remarkable strength throughout the pandemic. During the first quarter of 2021 the housing market proved that it continues to be unpredictable and is unlike anything we’ve experienced in recent years. Data insights suggest a sustained competitive Spring season not only in Colorado, but coast-to-coast. Anecdotally, we hear of listings receiving multiple offers well-above the ask price and dozens of showings in a weekend with limited 15-minute viewing windows and creative offers that may let earnest money go hard at contract or waive the right to request inspection repairs.
According to Realtor.com the inventory of homes for sale in February decreased by 48.6% nationally over the past year, a higher rate of decline compared to the 42.6% drop in January. Locally in Denver Metro, the month ended with just 1,864 homes on the market, down 53% YoY. Additionally, Realtor.com reports in the 50 largest U.S. metros, the typical home spent 48 days on the market, and homes spent 12 days less on the market, on average, compared to February 2020. In Denver Metro, the average days in MLS fell to 22, down 41% YoY.
Since January, mortgage rates have increased ~50 basis points from historic lows and home prices have risen, leaving would-be homebuyers with less purchasing power and unfortunately this has disproportionately affected the low end of the market, where supply is even more slim. Presuming interest rates continue to remain low and inventory scarce, there will continue to be multiple buyers for every correctly-priced home, and statewide, Colorado sellers will continue to see contracts with terms favorable to sellers.
- The close-price-to-list-price ratio is 102.8% and home are selling for an average of $17,512 over list price
- Single family homes hit an average sales price of $625,433 and reached a median sales price ofo $527,562
Denver Rental Market Insights
According to Apartment List, the March 2021 Rent Report reveals that in February, (the most recent period for which data is available), the average rent in Denver increased ~1% over the previous month. Even so, rents in downtown are still down by ~5% year over year, putting its trend in line well below that of Colorado and the country as a whole over the past 12 months. In downtown, the average apartment rental concession on a new lease 12-months or longer is 4-weeks free rent, and concessions are likely to remain in place through the entire year with new downtown inventory coming online this spring and summer.