A Look at Denver’s Numbers
Denver’s real estate market continues to be highly competitive. Here’s some data to put things into perspective:
From 1985 through 2020, the average number of active listings in February is 13,531
The record-high February was in 2006 with 25,484 listings
We set a new record-low February in 2021 with just 2,042
Wow, right? If you’re actively looking to buy a home, it’s no wonder that it’s taking longer than you might have expected. And it’s no wonder that you’re running into bidding wars on just about every property. You’re not alone. In fact, one-hour showings are down to 30 or 15 minutes to get more buyers through the door. There are a lot of people in the same situation.
Now, because of low inventory, average days in the MLS dipped to just 19 while the average sales price increased to $632,581. That’s up 23.2% compared to February of 2020, but less than 1% versus last month! A small bright spot, along with continued low interest rates.
However, whether or not this will continue depends on a number of currently unknown factors, including seasonality of the market, continued low interest rates and the rollout of vaccines.
It’s possible that due to the COVID-19 pandemic, many people who want to sell don’t want to put themselves at risk going to market and moving before they’ve been vaccinated. We could see an influx of inventory as more and more people receive the vaccines. But maybe not.
It’s Not Just Happening in Denver
According to Realtor.com, Denver is not the only city seeing low inventory. It’s actually an issue affecting the real estate market nationwide.
At the end of February, there were nearly half as many homes for sale in the country versus the prior year. Compared to the first two months over the past four years, approximately 207,000 fewer homes were listed during the same time period in 2021. And of course, this had led to a jump in prices across the United States.
If you’re a seller who’s waiting to put your home up for sale, now is the time. Yesterday was the time, actually. With the pandemic disrupting the typical seasonality of real estate, waiting until late spring or early summer is no longer the absolute “prime time” to list your home. By then, a jump in interest rates, or an influx of new inventory could cut into your profits and lead to your home taking longer to sell.
Your first step is to talk to your PorchLight agent. You can trust that we adhere to the most rigorous standards to protect our clients. During open houses and showings, masks and gloves are required, and we only allow one family group in the home at a time. Everyone is asked to social distance and sign-in digitally. We’ll keep the windows open as much as possible and wipe down high-touch surfaces on the way out.
Our agents can also meet with you via Zoom to discuss the real estate market and present a full valuation of your home. Whatever you’re comfortable with, they will accommodate.
Looking for a Cash Offer Advantage?
At PorchLight, we understand that our buyers and their agents are frustrated with the market right now. We want to get you into your dream home, asap! That’s why we’ve partnered with Homeward, a real estate finance company, that allows you to buy with cash. You can even make a cash offer before you sell your current home.
If you’d like to learn more about this option, check out our previous blog post, then talk to your PorchLight agent about getting started with the qualification process.
For More Information on the Denver Real Estate Market
CLICK HERE to download our in-depth, printable PDF report.