What has been referred to as the “extreme seller market” continued for Denver residential property into May, with average selling prices continuing to break records, a pathetic inventory for a market the size of the Denver market and the days of home ownership Market remains, dwindling, according to the Denver Metro Association of Realtors.
“As competition persists across all price ranges and static inventory is scarce, it is likely that records will continue to be broken in this hot market,” said the report released on Thursday.
The average closing price for detached single-family homes rose to $ 700,559, up 29% from May 2020. For all residential homes (condos and single-family homes), the average closing price was $ 623,279, up 26% year over year.
Meanwhile, the inventory of homes for sale continues to decline, with only 2,075 active listings at the end of May. That is 20% less than in April and 71% less than in May 2020.
Add to this the decreasing average days in the home market. That number fell to 11 days, 15% less than April and 54% less than the average days on the market a year ago. For comparison: a buyer of a single-family home had an average of 20 days in May 2019 to view a house and submit an offer. That dropped to six days in May.
And “buyer fatigue” is common, said Andrew Abrams, chairman of the brokers’ association market trends committee.
“Like a marathon, shopper fatigue slowed people down but didn’t stop anyone from crossing the finish line,” Abrams said in a statement. “Offers continue to hit the market slowly while buyers continue to gobble up property as soon as they do. Just this weekend I wrote an offer in the $ 400,000 range with 40 offers and one in the $ 1 million range with double-digit offers. “
Some more interesting facts from the May market report:
- There were 5,322 closings in the housing market, slightly less than 5,536 in April but almost 50% more than in May 2020 when there were 3,578 closings.
- Sales volume rose 88% to $ 3.32 billion in May 2020.
- The average closing price reached 105.2% of the offer price in May, compared to 104.6% in April and compared to the level of 99.4% in May 2020.
With all this going, buyers will “need a lot of resilience and strength to overcome this tough seller market,” Abrams said.