Despite Stay-at-Home orders, April was "mostly" a Seller’s Market for buyers. While plenty of local real estate stats took a dive in April, prices held steady. Due to an even less inventory the housing market across the Denver Metro began to sell even faster than before COVID-19.
Of course COVID-19 was going to have a huge impact on the real estate market, open houses disappeared, showings moved online, job loss or insecurity made both buyers and sellers pause, stay-at-home orders convinced some owners to wait just a bit longer before listing their homes, and drive-by closings became a thing. But it is still unclear how much influence the global pandemic will have on what has been a record-setting, fast-moving local real estate market.
This week, the Denver Metro Association of Realtors (DMAR) has some answers in its latest report about real estate trends in the 11-county Denver metro area. In short, it looks like April 2020 needs an asterisk—and a fair amount of explanation.
April Denver Metro housing market statistics from REcolorado shows, not surprisingly, the market slowing as a result of the coronavirus.
The count for closed listings was 26% lower than last year at this time as buyers postponed their home purchasing. The number of New Listings sellers brought to the market also slowed, down 36% from a year ago. Although all are lower than this time last year, year-to-date numbers held strong, thanks to an active first quarter.
Two bright spots in the housing market remained as home prices held somewhat steady, up 1% from last year, (but down 2% from last month.) And second on average, homes spent 20 days on the market, 9 days less than this point in 2019.
In the Denver Metro Area this April, 3,855 homes closed, a year-over-year decrease of 26%. As compared to last month, sales saw a 19% decrease.
In April, the count of listings in Pending status was 3,318, which is 28% less than last month and down 45%, from April 2019.
Homes Closed Year-Over-Year Change: -26%
April 2019 -- 5,205
April 2020 -- 3,855
In April, the average price of a home in the Denver metro area was $502,207, a year-over-year increase of 1%, but down 2% from last month.
Single-family residences sold for an average price of $549,306, down less than 1% year over year. The price of multi-family/ condos/townhomes was up 3% from April 2019, at an average of $378,499.
Average Closed Prices Year-Over-Year Change: +1%
April 2019 -- $495,706
April 2020 -- $502,207
Throughout the month, sellers brought 4,843 new listings to the market, down 26% compared to last year, and a 28% decrease from last month.
The count of active listings of homes for sale at the end of April was 6,663, 15% lower than last year but 5% higher than the end of last month.
We currently have 7 weeks of inventory, one week more than last month and unchanged from last year.
New Listings Year-Over-Year Change: -36%
April 2019 -- 7,527
April 2020 -- 4,843
Days in MLS
In April, homes spent an average of 20 days on the market, 9 days less than this time last year, and 10 days less than last month. On average, single-family residences were on the market 19 days, while multi-family/condos/townhomes were on the market 23 days.
The median number of days a home spent on the market in April was 5, 3 days less than this time last year.
Days on Market Year-Over-Year Change: - 9 days
April 2019 -- 29
April 2020 -- 20
Year to Date
Year-to-date data for Listings Closed and New Listings shows the market has pulled back a bit amid the uncertainty surrounding the coronavirus. The count for closed listings is 2% lower than last year’s year-to-date figures and average price of those listings is up 4%. The number of new listings that came on the market is down 9%. On average, homes spent one day less on the market as they did at this point in 2019.
While the novel coronavirus slowed our economy, many of the reasons why people move—marriages, divorces, births, kept on in April, meaning that people needed to buy and sell homes. With ever low inventory, potential buyers were quick to make offers. The big unknowns now are what recovery will look like as Colorado and the Denver area continue to move out of stay-at-home orders. The entire industry is pivoting and adapting to nearly daily changing regulations will be key in 2020, but it isn’t about going to go back to business as usual for a while.
Thinking about buying or selling a home?
If you're considering buying and or selling home this year, an experienced real estate agent can help you navigate market conditions, see new home listings as soon as they hit the market, negotiate an offer based on the true value of the home, and more! Contact me today, your local REALTOR® about housing market trends in your area.