Denver real estate is having quite a year, as if this was anything new for 2020. Why should the housing market be any different? Just like almost everything else in our purvey, it’s hard to pinpoint exactly what is making these housing numbers, like a shortage of houses across the board but increased sales year-over-year. It’s a seller’s market, with a shortage of sellers, and therefore a shortage of listings. This is no reason to despair, though. It only means you need to work with the best to find what you’re looking for in the Denver Metro and Front Range real estate markets.
One of the big things to consider this year is buyer and seller habits. Even with a marginal, if any, decrease in buyers in the Denver area sales are still increasing substantially. Overall, the Denver area saw a 16% increase year-over-year in closings. This is encouraging because it’s a sign of the potential economic recovery that’s driving Denver to be one of the leading cities in the nation. This, we all know, drives the continued growth of the Front Range Denver Metro Area despite increasing prices and a shortage of homes for sale. Housing prices continue to rise post-COVID, even with job numbers lower than the beginning of the year.
One might think that during an economic downturn houses would flood the market, much like it did from 2008-2010. Things are quite different this time. The “working from home life” has shifted how people interact with their living situations, whether or not they own investment properties. Moving with kids in remote-learning disrupts a large life-flow with too much added stress, so less families are considering upgrading or shifting their living situation. Single individuals are taking their work to AirBnB’s and Short Term Rentals in many vacation destinations around the country. Telluride just reported their busiest summer season on record, indicating a lot of in-state travel and out-of-state vacationers. So a lot of people are keeping their homes while working while traveling, allaying their need to sell and buy something different. A lot of households are investing in their properties, utilizing 2020 as their year to renovate and recreate their living spaces. Then there’s the general distrust of the upcoming economy and the desire to hold on to any assets owned. All these factors, and more, are contributing to the decrease of inventory this year, and may be helping to keep the Denver Metro Area housing market a Seller’s Market in 2020.
Boulder County is seeing similar trends. One notable difference is the resurgence of the Luxury market. The median sales price of homes rose substantially last month, up 16% over last year. This statistic is an outlier in the Denver market. Overall, though, we still see a dramatic decrease in availability. There are less than half of the homes listed on the market compared to last year with sales increasing 30%! Condominiums are seeing the exact same trends, though the median sales price is paralleling the rest of the Metro Area.
Longmont, as a stand alone city, is doing a bit better than the rest of the Denver Metro Area. We have a higher percentage of homes on the market compared to the rest of the area over last year, and sales are increasing. Only about 30% fewer homes on the market with a 4% increase in properties sold. Median home prices in Longmont are rising at about 10% over last year. It’s very clear Longmont is a new “Hot Place” to live, even with all the new construction in apartments and condominiums, increase in rent, and homes flying through the market. We certainly love it here, so we can’t blame anyone for wanting to join our amazing town. Even during a pandemic, we’re still #Strongmont, even in our real estate statistics!
If you’re someone who is looking to make big changes during 2020, you still have time for your housing situation to be one of them. Let’s make the improvement in your living situation by finding your home! Get in touch with The Wise Team today and we’ll start searching for your Dream Home with you. Then you’ll be able to look back at this year and think, “Oh yeah, I bought my house that year, and created a home, despite all the chaos!”