Metro Denver’s sizzling housing market faces a dry supply of provide – The Denver Put up
Metro Denver may enjoy an abundance of refreshing rain this year, but that doesn’t apply to the local housing market, which remains so arid that more buyers are at risk of burnout.
The number of homes for sale in Metro Denver almost always rises between April and May as the school year ends and families advertise their homes or leave their rentals. The goal is to find a new place and settle in before classes start again in August.
But this year the stock of offers fell by a record 20% between the end of April and the end of May, leaving buyers with only 2,075 houses and condominiums to choose from. Compared to last year when the pandemic stalled the housing market, the inventory of listings has fallen 71%, according to a monthly update from the Denver Metro Association of Realtors.
“Buyer fatigue is the most widespread conversation among brokers right now,” said Andrew Abrams, chairman of the DMAR Market Trends Committee, in comments on the report. “Offers continue to hit the market slowly while buyers continue to gobble up real estate as soon as they do.”
Abrams said last weekend that he posted an offer for a home in the $ 400,000 price range, one of 40 offers that offer received. After an outlier year like 2020, the hope was that 2021 would feel more normal, but that’s hardly the case.
There were 5,322 home and condo closings last month, down 3.9% from April and up 48.7% year-over-year when the market was struggling with restrictions on demonstrations and reluctant sellers.
Buyers were less in love with condos and townhouses during the pandemic as they wanted larger living spaces and more distance from their neighbors. But as a sign of alleviation of COVID-19 fears or the lack of other options, interest in condominiums is rebounding sharply.
After lagging the single-family market for months, adjoining properties saw a greater monthly decline in available listings than single-family homes, by 22.5% versus 18.5%.
All the cracks and gaps that existed between different property types are now gone, Abrams said, adding, “It’s a strong sellers market for every property type and price point.” And this seller’s market is reflected in higher prices.
The average price of a single family home sold in the Denver metropolis last month reached $ 595,000, up 2.2% from April and 26.6% from May 2020, up 16.7% from May 2020.
Although some agents are seeing storm clouds on the horizon, as evidenced by a drop in visitor numbers, Abrams predicts that the Denver housing market will remain hot and will continue to break records. Buyers must preserve them or risk ending up as parched tumbleweeds on the fences of homes they will never own.