For months, the country has been speculating about how the last 90 days of 2020 would fare for the real estate market. The uncertainties surrounding the election, the imposing threat of a second wave of COVID-19, and the typically sluggish holiday season had the potential to cause a dramatic decline in homebuying activity. However, the Denver real estate market has so far refused to show any sign of slowing down.
The Denver Metro area benefits from unique characteristics and amenities that have allowed the area’s real estate market to not only remain healthy but show continual improvements as the year progresses. Here, buyers have a multitude of choices. Live the city life with easy access to open spaces, or enjoy living in a suburban community close enough to the Rocky Mountains to spend your weekends soaking up the beautiful Colorado weather.
For many, those features are reason enough the make the Mile High City their home, especially during a time when lifestyle is top-of-mind. Over the course of the last 10 months, Denver has seen growth in its key real estate market metrics in a year-to-date comparison to 2019, according to LIV Sotheby’s International Realty’s October Monthly Market Report.
Through October of this year, listings sold increased by 4%, totaling 52,124 homes sold in Denver Metro. Additionally, the average sold price of those homes grew by 6%, bringing the average sold price to $505,229. The increase in price may be influenced by this year’s lower than average inventory, which has created a seller’s market. Comparing January through October of this year to the same time frame last year, there was a 0% change in the inventory of available homes for sale. Without growth in the number of new listings, competition increases among buyers and creates upward trends in home prices.
The luxury sector of the market, which includes homes priced at or over $1,000,000 in Denver Metro, has performed exceedingly well compared to the previous year. The number of luxury listings sold has risen by an astounding 26%, growing from 1,926 homes sold through October of 2019 to 2,423 homes sold during the same time frame this year. There is no shortage of inventory in the luxury home market for buyers to choose from. Compared to 2019, new listings are up by 20%, which has kept average rising luxury home prices at bay. The strengthening demand for Denver Metro’s high-end homes is illustrated in the decrease in average days on market. Luxury homes spent 11% less time on the market through October of this year, averaging just 57 days.
For now, it appears that the housing market will defy all expectations and continue to show its strength and resilience through the end of the year. Consumers who are considering making a real estate move should think about taking advantage of Denver Metro’s active market while they can.
Learn more about the current market conditions by viewing the full October Monthly Market Report at coloradomarketreports.com. And for all of your real estate needs, contact LIV Sotheby’s International Realty by calling 303.893.3200 or visiting livsothebysrealty.com.