Saturday, November 27, 2021

Denver Real Estate Market Update May 2021

Denver Real Estate Market Update May 2021!

Michael Kozlowski #1 Individual RE/MAX Agent in the State of Colorado!

Selling homes from $30,000-$105,000 Over Asking Price in 2021! Don't Miss Your Opportunity Call or Text Today! 303-949-2755

We did it!  The Market actually has over 2,000 Active Listings (To be more precise, we ended April with 2,594 Active Listings). 

  • Is this a possible first sign of some increased Inventory or just a fluke in the Pending Activity? 

As we predicted, the number of New Listings YTD for 2021 is at 21,192, which is almost exactly the same as last year at this time.  Therefore, our Inventory challenges are still due to a Demand Surplus, which will be with us for most of this year! 

The Average of Price of a Single Family Home in April 2021 increased again to $699,039, which is compared to just $548,670 last year at this time! (That is a whopping 27.41% Increase in just 1 year)

  • A year ago could you have imagined that the price of a Single Family Home in the Metro Denver Area would be up 27.41%?

We commonly call this phenomenon a huge Inventory Shortage, but this data suggests that New Listings are pretty abundant, so the bigger picture is not an Inventory Shortage as much as it is a Demand Surplus!  

  • The Market wants to buy homes, and they want to buy them now!  The desire for more space, and to be in a forever home is at a record pace, as the Luxury Market has Closed 1,353 homes YTD vs 661 last year!  (That is up 104.69% YTD)

The Latest:

  • Finally an increase in Inventory to 2,594 Active Listings for Homes, Townhomes & Condos in all of the Metro Denver Area, which is down 62.16% from a year ago!   
  • The Average Price of a Single Family Home at $699,039 is up 3.62% from homes sold just last month! 
  • The Average Price of Townhomes & Condos at $444,252 is up 7.31% from a year ago. 
  • Over $667,048,008 of Luxury Homes sold last month which is up 227.59% from 2020!

Let’s remember that many of our YTD Stats comparing 2021 to 2020 will be skewed for the next couple of months as we recall that we were all in a quarantine at this time last year per a Governors Mandate.  We could have never predicted going from a quarantine and not being able to meet with clients for almost two months to this historic COVID crazy time in Real Estate right now!  The question is asked daily when this will end or change, and we admit that it is impossible to predict an ending date, but just like the weather in Colorado it will surely change.

There is no better time to list your home and take advantage of an unprecedented Seller’s Market! With interest rates near all-time lows there are opportunities for Buyers as well with the right strategies!

  • Will this be the beginnings of more balance in the market? The next few months will let us know but last month’s data is a start in the right direction.

The Market is moving differently in certain parts of town, but much of the Buyer demand has been moving in the suburbs, Douglas County, the Foothills and the Luxury Market!  Low Interest rates continue to help drive the demand! 

Please let me know if you have any questions or would like any more specific information, feel free to forward our market update to everyone you know and spread the word that real estate is open for business!

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