The March Denver Metro Real Estate Market Update and market final figures for February shows listings DOWN 69.7% from February 2020. Think about that - listings are down 70%. This lack of homes for sale (3,724)) is creating bidding wars again.
In my 22 years in the real estate business I have NEVER seen inventory this low and the bidding wars this tough. To put that in historic perspective a normal level of homes on the market (inventory) is normally around 20,000.
Buyers put 7,015 homes Under Contract – a 10.8% INCREASE from February 2020. So last month buyers put more homes (7,015) Under Contract than we had in inventory at the end of the month (3,724). WOW! That means if no other homes were put on the market, we'd run out of homes in about 2 weeks.
Listing Agents are reporting that homes are getting 60+ showings in 2 days; it is not unusual to get double digit number of offers; a lot of the offers are for cash; I am hearing reports of some homes around $550,000 price range getting $100,000 OVER ASKING PRICE. If you are a buyer in this market, it is imperative that you work with an experienced agent that can best present your offer to win the bidding wars.
The Average Sold Price had a slight increase last month to $547,932 in February compared to $540,846 in January. On an annual basis it is up 15.6% from a year ago. If buyer demand stays steady and number of homes for sale stays low, prices will continue to increase because of the #1 rule in economics of supply and demand.
In February 5,601 homes were sold/closed. The absorption rate has dropped again – if no other home came on the market it would take approximately 18 days to absorb/sell all the homes currently on the market (3,724). Anything under 6 months absorption rate is a sellers’ market, so we’re still in a very strong sellers’ market with less than a month of inventory.
That means it’s a VERY, VERY good time to sell but a buyer may experience bidding wars.
That’s the March Denver Metro Real Estate Market Update with the final February statistics.
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You’re thinking about selling your home, but you are not sure what the real estate market is doing. You don’t even know what the neighbors down the street sold their home for last month. You want to know what homes around you are selling for, but you’re really not ready to meet with a realtor yet.
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Also….check these out?
Denver Home Finder Service
Denver Home Seller Service
Cherry Creek School District Homes For Sale