There were only 2075 active listings in May compared to 2600 in April, but we are seeing less competition and fewer offers. Looking at this year’s showing trends, which is how many people have walked through a property, the average dropped in May to 18, down from the highest in February at 22. There’s a chance we are seeing seasonality in the market for the first time since COVID hit, since traditionally things tend to drop off around Memorial Day.
Now is still a good time to buy. While prices are high and inflation will likely tick up, we’re also seeing historically low interest rates. It may be frustrating for newer investors to have to put in multiple offers, but we can help you find a good deal that will allow you to get cheap debt and ride the wave of growth. Reach out to us, and we can form a strategy that will allow you to realistically achieve your goals in this market.
- Listen to the podcast “#287: Denver Real Estate MLS Market Stats – May 2021” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
May 2021 market stats with ideas and observations
- Number of new listings
- +4545 detached single family (vs 5225 in May 2020)
- +1766 condos (vs 2112 in May 2020)
- I still suspect there are sellers that need to move up that are not on the market yet. Doesn’t look like many of them came to market this month.
- Number of active listings
- Off -20% from April 2021
- Off -71% from May 2020
- Similar results for condos and detached single family
- In total, 2,075 active listings.
- Average from 1985 – current for May: 15,600 listings.
- Number closed
- Off -4% from April 2021
- +49% from May 2020
- Normally we’d see a large seasonal uptick between April and May, so seeing a decline in sales is a big change from the normal seasonal trend.
- Given the lack of inventory, it’s not too surprising.
- Of course, great growth from last year, since COVID greatly limited showings in March / April, so closing traffic in May 2020 was really depressed.
- Condos did a little better than homes
- Average +26% from last year
- Condominium and detached single family did about the same
- Showing traffic / active listing was down a bit
- Could partially be due to Memorial Day weekend, but I think buyer frustration with the purchase process and pricing is part (most?) of it
- Days on Market
- For homes, average is now 8 days on market (from 24 this time last year)
- For condos, 17 days on market (vs 25 last year)
- Under contract
- 6,719 at end of May 2021 vs 6,521 at end of May 2020.
- 6,719 at end of May 2021 vs 5,744 at end of April 2021.
- Despite lack of inventory, we seem to be set up for good closing unit counts in June and July.
According to home builders, the cost of lumber has increased more than 300% since last April, with other materials like steel and concrete rising fast as well. The National Association of Homebuilders has reached out to lawmakers for solutions resulting in bipartisan support.
This limits us from “building our way out” of this low inventory problem.
According to Money.com‘s 2020 Best Places to Live, Parker Colorado is number two in the country. Perks include mountain views, open space, a strong local economy, and just 25 minutes to downtown Denver. As of April, about 1.8 million households who aren’t in forbearance were 90 days delinquent on their loan, according to data company, Black Night.
I’d imagine that Denver‘s share of that is 12,000 to 18,000 homes.
Source: The above executive summary is from Lon Welsh of Your Castle Real Estate.
Denver Housing Trends May 2021
Showing per active listing trends for Denver
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