Although it’s technically summer, the delayed spring real estate market has finally sprung. Due to restrictions put in place amidst the global pandemic, the Denver housing market was significantly slowed, with many buyers and sellers uncertain of how to move forward in the marketplace. Now, consumers are regaining their confidence and ready to make real estate transitions and investments once again.
According to the monthly market reports compiled by LIV Sotheby’s International Realty last month, listings sold in Denver Metro were down 14% in a year-to-date comparison of May of 2019. However, May’s pending sales paint a much different picture of the marketplace. As more and more buyers reentered the market following the peak of COVID-19, pending sales more than doubled, giving the Denver Metro housing market the momentum it needs to make a comeback this summer.
In May, more than 6,800 properties went under contract, a 115% jump from April. This illustrates that while few buyers actually purchased a home last month, many are in the process of buying their dream homes. Not only is the increase in pending sales from April to May impressive, this rise is even 11.9% higher than April of 2019.
Nationwide, mortgage applications are skyrocketing, and consumer confidence numbers are climbing. All of these factors indicate that the delayed spring real estate market is here and homebuyers are excited to pick up where they left off.
Both buyers and sellers can find silver linings in the market’s current conditions, according to data from First American Title. For buyers, inventory is slowly starting to increase. For detached single family homes, active listings grew by 1.2% in May, bringing the number of available properties to 3,998. Attached dwellings saw even more growth, increasing by 5.6% in May with 2,272 units for sale. And while the rise of available inventory is great for buyers looking for their perfect home, sellers still have a lot of power in the marketplace.
Due to the general lack of inventory, buyers need to make competitive offers on the homes they really want. In May, 23.2% of attached single family homes sold for over their asking price and an additional 34.5% sold for the full asking price.
Overall, Denver Metro’s real estate market is waking up from its COVID-19 hibernation and ready to deliver results for buyers and sellers. To learn more about your local real estate market or to create a plan for achieving your real estate goals this year, contact your LIV Sotheby’s International Realty broker or reach out to our team of real estate professionals by calling 303.893.3200 or visiting livsothebysrealty.com.