COVID-19 Impacts Felt But Market Shows Resilience
May 2020 Metro Denver Market Update
The number of new listings, homes under contract and home sales all experienced significant declines in April. However, on April 27, when restrictions moved to “safer-at-home,” there were around 3,500 showings scheduled that day – the highest of any Monday in 2020 so far. Other positive signs include an increase in mortgage applications and home sellers receiving nearly 100 percent of their list price.
April’s vital statistics for all homes – detached single family (DSF) and attached single family (ASF) combined – include:
· The average price for homes sold during the month declined 1.8 percent from the previous month but increased 1.5 percent from a year ago;
· Although there were fewer new listings, the slowdown in showings and sales resulted in active listings rising 18.7 percent compared to the previous month (but down 2.2 percent from this time last year); and
· The average days in the multiple listing service (MLS) was down 33 percent from the prior month and 31 percent from a year ago.
Although the market has changed, the industry has quickly adapted through measures such as virtual tours and drive-thru closings. A recent article on Apartment List, lists seven ways that the COVID-19 pandemic and economic climate could reshape the housing market:
1. Mobility will be lower (at least in the near term) due to safety concerns and economic uncertainty.
2. An increase in remote working may result in companies and workers reconsidering their location.
3. Migration to urban cores may slow.
4. Affordable housing across many markets may still be a challenge.
5. Housing inequality may grow.
6. Homeownership may be delayed for the younger generations.
7. The number people buying homes via virtual tours, rather than in person, will likely grow.
If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or firstname.lastname@example.org. I am never too busy for your referrals.
This update is based on information provided by the Denver Metro Association of Realtors® for the period of April 1, 2020, through April 30, 2020, for the following counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.