DMAR Real Estate Market Trends Report | MAR. '20
In February, 5,122 new listings came on the market, up 5.56 percent from the month prior which saw a massive month-over-month increase. Home sales were up 3.16 percent in February so the month ended with only 4,835 active listings, down 2.15 percent from January and 19.64 year over year.
“While the stock market struggled with fears of the spreading coronavirus, real estate stayed strong,” said Jill Schafer, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “Homebuyers and sellers leaped into action and took full advantage of the extra day in February. Despite being one of our snowiest Februarys on record, real estate agents put more homes on the market, up 5.56 percent from the prior month. We shifted 7.08 percent more homes into a pending status and closed 3.16 percent more deals than in January.”
Not everything was rosy in the month of love according to Schafer. She says a major concern was the continuing drop in the number of active listings at month end and adds, “New listings moved into pending status faster than presidential candidates dropped out. The talk between agents sounds like more multiple-offer situations were occurring than a few months ago. Fewer homes to choose from pushes prices up in a community that already has an affordability issue so now is the time to get homes listed and on the market.”
The low months of inventory mean sellers have the advantage in all price segments except for the Luxury Market. Homes priced above $1 million had higher months of inventory, indicating homebuyers may have a little more power in negotiations on high-end homes in some areas.
Notably, the median days on market in the entire residential market dropped 55.56 percent to 12 days in February from 27 in January. The average closed price of a single-family home came in at $544,054, up 2.51 percent month over month. The median year-to-date close price was $465,000, an increase of 8.14 percent compared to 2019.
Our monthly report also includes statistics and analyses in its supplemental Luxury Market Report (properties sold for $1 million or greater), Signature Market Report (properties sold between $750,000 and $999,999), Premier Market Report (properties sold between $500,000 and $749,999) and Classic Market (properties sold between $300,000 and $499,999). In February 2020, 141 homes sold and closed for $1 million or greater, up 18.49 percent from January and 8.46 percent year over year. The closed dollar volume in the luxury segment in February was $215.45 billion, up 17.6 percent from January and 8.18 percent year over year.
The highest-priced single-family home that sold in February was $6,620,000, representing eight bedrooms, 13 bathrooms and 12,957 above ground square feet in Cherry Hills Village. The REALTORS® representing the buyer and seller are DMAR members. The highest-priced condo sale was $2,770,000 representing two bedrooms, three bathrooms and 2,546 above ground square feet in Lower Downtown Denver. The REALTORS® representing the buyer are DMAR members.
“Housing data indicates February was a great month for luxury real estate in Denver,” stated Jenny Usaj, member of the DMAR Market Trends Committee and Metro Denver REALTOR®. “This year, 260 homes priced $1 million or greater have already sold year to date, up 15.56 percent compared to 2019. The luxury market is off to an aggressive start in 2020.”
Last month, the luxury single-family market alone closed on 126 homes, up 20 percent month over month and 7.69 percent from last year. “There are more buyers ready to purchase a home priced over $1 million than we saw in 2019. Single-family sellers are enjoying a more crowded marketplace. That said, these new homeowners are still able to negotiate the sale. The reported close-price-to-list-price ratio shows that homes are selling at 96.63 percent of the asking price. This is noteworthy as homebuyers in lower price points are competing with multiple offers.”
The condo market is also up in the number of closed homes in February which experienced a 7.14 percent increase from the prior month and 15.38 percent year over year.
Overall, luxury listings are staying on the market less time than last month as reflected in a decrease in both the median and average days in the MLS, at 47 and 76 days respectively. Usaj comments, “Days on market for luxury homes is another indicator that the market is moving faster in this price band. Homebuyers are out looking at homes and making decisions quickly despite the snowfall we saw last month.”
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