May typically marks the start of the summer real estate season, with buyers and sellers taking advantage of nice weather and summer vacation to move. Of course, this year has been anything but typical.
So what does this mean for the Denver market right now?
New listings climbing. After a slower March for the market, we started to see new listings climb back up in April and this trend continued into May. This month, we saw 54% more single-family homes listed in Denver vs. last month, indicating that more and more sellers are feeling comfortable putting their home up for sale.
Inventory remains tight. While new listings are continuing to climb, overall housing inventory is still lower than we’d expect for this time of year. Pre-coronavirus, there was already a nationwide shortage of homes for sale compared with previous years. The existing shortage coupled with sellers sitting out towards the end of March and much of April meant fewer homes were for sale in May.
Buyers flood the market. Conversely, once stay-at-home requirements were lifted, buyer activity soared. In Denver, the number of homes that went under contract more than doubled from April to May. Additionally, the huge jump in home showing activity, as indicated in the graph below, shows us that buyer interest has rebounded to levels seen before the pandemic.
For buyers, hundreds of new listings are hitting the market, but not at a rate that will close the inventory gap just yet. This means there are fewer homes on the market heading into June with more interested buyers entering the market each day. If you’re thinking about buying, having a competitive offer (such as a contingency-free offer, which you can make with Orchard) will help you stand out to sellers who may receive multiple bids.
For sellers, median home prices continue to remain stable, suggesting that most sellers are receiving offers close to their original list price. The average number of days a home was listed on the market before selling (DOM) has remained stable and is a very quick 8 days! This suggests that with the recent increase in buyer activity most sellers are waiting a little bit less this year than last year to receive an offer.
Social distancing measures (six-foot distance, gloves, masks, thorough cleaning between showings, etc.) will also still need to be implemented when anyone visits your home. With Orchard’s Buy & Sell service, we’ll take care of deep cleaning and listing your home after you move, so you can skip the stress of home showings.
For a deeper dive into the Denver area’s real estate recap for May 2020, read on.
New listings in May. While there were 20% fewer homes listed in May compared with the same time last year, this is a 54% improvement vs. April.
The median percentage of a home’s original list price that it ended up selling for. In Denver, this normally ranges between 97-99%. Sellers can expect to get at or very near their original list price when working with an experienced agent who can help develop the right pricing strategy.
Increase in homes that went under contract vs. last month. Once restrictions were lifted, buyer activity skyrocketed in May. Not only did more homes go under contract compared to last month, but more homes (+12%) also went under contract compared to the same time last year.
“Buyer activity has soared since restrictions were lifted. We’re fielding more interest in home tours each day and our team is pivoting quickly in how we show homes in the ‘new normal’, whether in-person or through virtual tours.”
— Peter Winscott, Orchard Home Advisor
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