We’re officially well off into 2021 with quite a year to have behind us. The housing market in the Denver Metro area saw growth in sales, despite limited availability and rising prices. December was not a great month. Sales plummeted with a similar decrease in listings. This is typical of the time of year, as Christmas usually takes the focus away from home buying. Overall, sales volume last month was up 20% despite fewer sales. Housing costs are at record highs while listing totals are at record lows at year end. It looks as though Denver is still a hot market to buy in, even post-COVID.
The average sales price of homes in Denver ended at $525,285 across the metropolitan area, up nearly 8% from last year. This is a faster growth rate than the national average of 5%*. This helped the total sales volume grow 15% year over year. Homes sold at a decent pace, down to an average of 26 days on MLS, with a median of only 7! This gives a myriad of signals for 2021. With low invententory and rising prices in both construction materials and housing, housing prices are slated to rise even more this year. New construction will continue to push for more availability, but it doesn’t look to keep up with the increased growth of the area.
Boulder County was no exception to the COVID-effect. Prices rose, inventory stayed low, and sales were up. Overall housing prices in Boulder County rose 6.4%, bringing the average price to $721,551 – a stark bit higher than the Denver Metro area at large, but we must consider the luxury market available in the county. The beginning of the year saw a slump in the luxury market, where housing prices dropped by millions as the coronavirus took hold of Colorado. This also halted listings of townhouses and condominiums into the summer months. Fall and winter, however, saw a resurgence of both these markets and the subsequent sales outpaced the losses from the beginning of the year. The luxury market ended the year fairly healthy in sales, and sales of townhomes and condos caught up to last year, only shy 21 sales by year end. Boulder may be expensive, but it’s still the place to be.
Longmont’s real estate market was healthy throughout 2020. Though a slump did spring upon us like everywhere else, the influx of residence and beauty of our area kept housing sales steady throughout the year. Average sales price rose by 8.2% last year, averaging $506,296 by year end. Unlike the rest of the metropolitan area, Longmont saw an 11% increase in total homes sold. An interesting note, though, is that townhomes and condominiums did not fare well in town. This could be due to the abrupt increase in apartments in prime locations offering affordable housing. The only area nearby to have truly surpassed Longmont in performance is Frederick, but they have had the largest boom in home-builds in the area as well.
Though the end of 2020 saw a typical slump in sales, the year was a good one overall. All indicators show that 2021 will be extremely competitive. With fewer homes available, a surge in apartments and affordable housing, and an increase in unemployment the competition will remain high, driving prices higher. If the rental market continues to hold on through the pandemic and jobs begin to return before further economic strife takes hold, then housing will continue on its course. This creates an interesting opportunity for real estate investors’s portfolios. This may be the time to adjust properties and cash in on a little profit, while holding onto long-term income generating assets requiring little maintenance.
Whether you’re looking to buy or sell a home in the coming months make sure to check the pulse of your area. Working with knowledgeable real estate professionals like The Wise Team will help ensure you get the most out of your transaction. If you’re moving to Longmont, we can help find the perfect area to fit your needs and desires. It’s beautiful here, throughout the year! And our community is working together to thrive through these interesting times. Get in touch with us today and let’s figure out your next moves in real estate.
The Wise Team
*according to Forbes; 12/16/2020: https://www.forbes.com/sites/brendarichardson/2020/12/16/experts-predict-what-the-housing-market-will-be-like-in-2021/#:~:text=As%20a%20result%2C%202021%20will,to%20consider%20a%20new%20one.