We ended 2020 with a record-low number of homes on the market – just 2,541. The average number of homes for sale at the end of December is 12,941. With such low inventory, the market strongly favors sellers. The average closed price was up 5.44% compared to 2019. Despite the pandemic-induced stand-still in the market during the second quarter, there were a record number of closings last year. In fact, we saw 62,985 closings, almost 7% more than during 2019. The Denver metro area continues to outperform other markets in the country. We expect the local economy will strengthen as we move ahead and also think mortgage rates will stay low. These factors will continue to drive the market.
Mortgage rates were at an all-time low of 2.66 at the end of December and are at about 2.86 now. Low rates continue to motivate buyers, but lack of inventory is making the hunt for homes difficult. Creativity and flexibility with offers can help buyers win the homes they want. Over the last couple weeks, mortgage applications to purchase a new home have decreased slightly, with volume 3% higher than one year ago. Over the last few months, mortgage applications had been up about 20 to 25% compared to the previous year. This could indicate that some buyers are waiting to buy until home prices slow their steep rise or more homes become available.
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Real Estate News:
State’s COVID-19 eviction moratorium expires with end of 2020 as Polis declines to extend it – Gov. Polis signs executive order preventing late fees for residential and commercial tenants
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During the last week:
New Listings – 380
Back On Market – 112
Price Increase – 180
Price Decrease – 126
Pending – 701
Withdrawn – 69
Closed – 1296
Expired – 786
Previous Week:
New Listings – 527
Back On Market – 152
Price Increase – 278
Price Decrease – 182
Pending – 892
Withdrawn – 64
Closed – 1109
Expired – 783
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Based on data from REColorado®