Q: What’s Happening in Our Market?
We have a bunch of news from our Denver real estate market to share.
I hope you’re staying safe out there! Today I’m sharing a rundown of what we’re seeing in the real estate market because it’s been flourishing lately. Today’s market update includes the 11 counties that make up the Denver metro area, and data through the end of July.
Month over month, active listings have increased 1%, but what’s shocking is that year over year, they’ve decreased over 31%. The number of closed homes is up 8% from last month and 12% compared to last year. So once again, we have less inventory but more sales. This crunch in inventory is creating quite a bit of demand.
The average closing price is $540,890, which has risen 6% month over month and 9% year over year. Those numbers may not seem high, but that’s a crazy amount of appreciation. A large reason for this increase is because interest rates are so low; the lowest I’ve seen from a client was a 30-year mortgage at 2.67%. If your rate is in the twos or low threes, that’s excellent!
This crunch in inventory is creating quite a bit of demand.
A few other bits of news: On July 1, Governor Polis allowed open houses again, and we’ve seen a lot of activity. Buyers want to get out there and see properties. Also, of all the sales of detached homes in June, 51.4% were considered flash sales. That means they went under contract in less than a week.
At the end of July, The Federal Reserve determined that they are not going to increase rates for the foreseeable future, and we often see a direct correlation between the Fed rate and mortgage rates. So we expect mortgage rates to stay low.
As always, let us know via phone or email if you have questions or we can help you in any way. We look forward to hearing from you.