Get me off this COVID-19 rollercoaster! Cases are resurging closing businesses that just opened while risking the recent good news of job creations and lower unemployment we saw from economic reopenings in May and June. The Fed is poised to act to keep rates low and urged lawmakers to accelerate the fourth stimulus package before programs end July 31st. Locally, Denver's housing market remains strong with growing pending home sales, almost full recovery of closed homes compared to 2019, and appreciating values due to scarce inventory.
Here are some points covered:
Metro Denver’s Resilient Housing Market
The resiliency of our Denver Metro buyers is the theme of July’s DMAR Market Trends Report. New Listings were gobbled up as Pending Home Sales show strength growing 16% month over month - on top of May’s 115% surge. We saw Closed homes recover to within 11% of 2019’s year to date numbers, resulting in a difference of only 3000 homes sold this year compared to last year. Considering we sell an average of 57,500 homes a year, we’ve recovered to within half a month’s sold homes. The Median Closed Home Price recovered from its slight dip last month, landing at a 4.53% gain for our homeowners.
The market gains came at a cost: inventory. We know prices go up when supply is scarce as Months of Inventory dropped from two to one month with the biggest drop in the $1M+ homes going from 9.5 months to 4.36. $300 and $400K’s priced homes also saw their months of inventory cut in half as sellers stayed on the sidelines as confident buyers engaged in bidding wars.
To say Active Inventory became scarce is an understatement and with an 11% decline month over month and 33% year over year - after an almost 20% year over year drop last month from 2019.
As the virus rampages throughout the nation and the economy attempt to recover, the housing market will be its guiding light, strong, stable, and willing to provide financial security to those who participate.
Your partner building wealth through real estate,
The Rueth Team of Fairway Independent Mortgage Corporation
750 W Hampden Avenue, Suite 500
Englewood, CO 80110
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