No one really knew what kind of effect COVID-19 would have on housing. Most in the industry prepared for the worst, but what unfolded was something absolutely extraordinary – a new found appreciation for what it means to be “home” and a movement to make that “at home” experience as fulfilling as it could possibly be. The result was a year in real estate like no other.
• The Average Closed Price in NW Denver set an all-time area record in 2020 at $651,809 for all types of property, 5.4% above the previous year, and well above Denver County’s record high average of $576,112, also set in 2020, which represented a gain of 7.7%.
• There were 2,732 New Listings brought to market in NW Denver in 2020, up 11.6% over 2019.
• Closed transactions reached a record high of 2,239, up 25.9% over the previous year, with $1.46B in sales volume representing a gain of 32.8%. In stark contrast, Denver County saw a gain of 2.9% in new listings, 7.1% in closed transactions, and a 15.3% gain in closed volume over 2019.
• Listings in NW Denver and Denver County for 2020 contracted in a median of 8 days in market and received at an average of 99.8% and 99.7% of list price respectively.
• NW Denver ended 2020 with an all-time area record low of just slightly over a half month of available inventory (6 months is considered a “balanced market”) which was down 60% from the previous December. Denver County ended the year with nearly one month of available inventory. The NW Denver average for 2020 was only 1.6 months of inventory, while Denver County averaged an even leaner 1.4 months of inventory.
Economists at the National Association of Realtors predict that interest rates for 2021 will not go higher than 3.1% keeping strong home buying momentum throughout the country to the tune of an average growth in sales of nearly 10% and a growth in average home prices of 5%.
• NAR predicts that Denver Metro will outperform sales nationally with more than 10% growth, and more than 5% in average sales price, citing several factors including:
- Faster than average unemployment recovery.
- Continued migration gains to the metro area during the pandemic, primarily from millennials, who represent the largest overall number of homebuyers.
- Denver Metro is a very popular destination for “teleworking”, and many Denver metro companies support “teleworking” as a permanent option.
• Realtor.com® projects that Denver Metro will be one of the Top 10 performing housing markets for 2021. Home prices across the top 10 markets are projected to increase by 6.9% and sales will jump by 13.1% year-over-year. This figure is significantly higher than their national projection of 5.7% price appreciation and 7.0% sales growth.
• Denver County has experienced an average gain of 6.83% in sales price and 9.6% in sales volume over the last 4 years and, given the potential for more businesses to open up completely later this year further reducing unemployment, it is very possible that Denver County matches the expectation set by Realtor.com® for Denver Metro of a 6.9% gain in average sales price and 13.1% gain in sales growth.
• NW Denver has moved towards a more “normalized” gain over the last 4 years with an average of 5.87% per year in sales price. While the additional inventory in 2020 (although still extremely low) kept average prices from skyrocketing, the sales volume increased by an incredible 32.8%, bringing the 4-year average gain in volume to 13.9% per year. Demand will likely further increase as the threat of COVID-19 begins to wane and if new inventory doesn’t accelerate with demand, it is very likely that our region mimics Denver County in achieving the Realtor.com® expectation.
*Data provided by InfoSparks
What does this all mean for you if you are considering buying or selling in 2021? Curious about the value of your home? We can help! We offer a FREE No Obligation Market Analysis! Thinking the house could use a little bit of fix up prior to going to market? We have the cure for that as well! Our brokers offer Compass Concierge – We can help you maximize your value with zero out of pocket costs! Call us today to discuss details 303.455.5535
Are you considering buying in 2021? Our skilled team can help you find your dream home today! Let us show you how to win in this competitive market! Put our years of experience to work for you!
Nostalgic Homes | Compass
Jenny Apel is the Senior Broker Associate & Group Leader at Nostalgic Homes Group