How economic changes are impacting Denver Real Estate Values. A critical report delivered to you, weekly.
Last week , we established a baseline for the Denver real estate market through Week 10 of 2020, or prior to any presumed market impact from COVID-19. 

Our intention is to write fact based and data driven analysis versus sensational reporting. We maintain that commitment. However, this week is more conjecture as we endeavor to provide interpretation of any patterns we see evolving.
FINDINGS

AS EXPECTED

Consumer behavior shifted in weeks 11 and 12 (2020). Contract Terminations (*properties back-on-the market) and properties withdrawn from the market have both increased over the last two weeks. This is most likely short-term reactions to the economy, job loss or the pandemic scare. As time passes, we expect the emotional responses to reduce and these data points to normalize. 
HOMES FOR SALE

Inventory levels rose approximately 20% through weeks 11 and 12. This inventory rise is a combination of an average number of new listings hitting the market and an above average number of properties back on the market from previous contracts that terminated.  

As of March 27, 2020, there are 5,299 homes available for sale. This time last year, there were 5,537 homes available. Low inventory remains the primary driver for increased appreciation in the Denver real estate market.
HOMES UNDER CONTRACT

We saw an 11.1% and 17.1% decline in the rate of homes going under contract over the last two weeks, respectively. This reduction in purchase activity will likely contribute to at least a slight rise in available inventory of homes for sale. We expect this trend to continue, at least short term.
HOME SHOWINGS

The number of people viewing properties was down over the last two weeks. Week 10 saw almost 7 showings per property and by week 12 that number dropped to just over 4 showings per property.
For more details on each chart, click the button below. 
CRYSTAL BALL

With the recent state-wide shelter-in-place order from Governor Polis, we expect a substantial decline in Denver metro real estate activity. Likely, fewer homes will come on the market, fewer buyers will be out searching for homes and fewer people will be writing offers on properties. 

The charts and graphs we send in the coming weeks may appear staggering. However, we should be careful not to jump to conclusions about what this change in activity means, even over the short term. 

Governor Polis classified real estate as an essential business.  As such, activity in the real estate market will not stop. 

With a likely two trillion-dollar stimulus package, low interest rates, arguably the strongest real estate market in America and one of the top local economies in the country, Denver is poised (as well as anywhere) for sustainability and potentially even growth in the coming months. 

Yes, we all have questions:
  • How long will shelter-in-place orders last? 
  • How many jobs will be lost? 
  • How big might the economic rebound be, as predicted by many top economists?

No one really knows at the moment. 

What we do continue to see however, is active buyers and sellers. 

Buyers who are comfortable in their jobs, have good money in reserve and want to capitalize on low interest rates are searching for homes and writing contracts. 

With inventory levels historically low, sellers who properly prepare their home to sell are likely to see competitive offers. They must be patient, however, as buyer-activity will decline with the shelter-in-place order. 

Each person’s situation is unique. What’s important is consultation about your specific needs and together, devising a strategy that helps you accomplish what’s best for you. 

Please reply to this email or call me if you have questions. I’m here to help.