Metro Denver is enjoying plenty of refreshing rain this year, but the same can’t be said for the local housing market, which has persisted to the point that more buyers are at risk of burnout.
The number of homes available for sale in Metro Denver almost always increases between April and May as the school year ends and families list their properties or forego their rentals. The goal is to find a new location and settle down before classes begin in August.
But this year, listings fell by a record 20% between the end of April and the end of May, leaving buyers with 2,075 homes and condos to choose from. Compared to last year, when the housing market came to a standstill due to the pandemic, the list of listings declined by 71%, according to monthly updates. Denver Metro Association of Realtors.
“Buyer fatigue is the most prevalent conversation within realtor circles right now,” Andrew Abrams, chairman of the DMAR Market Trends Committee, said in the comments accompanying the report. “Listings are slowly coming to market, while buyers continue to grab properties as quickly as possible.”
Abrams said late last week he wrote an offer on a home in the $400,000 price range, one of 40 offers the listing received. After an outlandish year like 2020, it was expected that 2021 would feel more normal, but that is hardly the case.
There were 5,322 closures on homes and condos last month, a 3.9% drop from April and a 48.7% increase from a year ago, when the market was still facing a range of underperformers and reluctant sellers.
Buyers were less attached to condos and townhomes during the pandemic as they demanded larger living spaces and greater distance from their neighbors. But interest in condos is rebounding strongly, in a sign of easing COVID-19 fears, or perhaps a lack of other options.
After trailing the single-family market for months, attached properties saw a larger monthly decline in available listings than single-family ones, falling 22.5% versus 18.5%.
Whatever cracks and gaps existed between the different asset types, Abrams said, “it’s a strong seller’s market for every asset type and price point.” And that seller’s market is turning into higher prices.
The median price of a single-family home sold in Metro Denver last month was $595,000, up 2.2% from April and 26.6% from May 2020. The average price of a condo or townhome sold last month was $380,000, up 1.3% from April. 16.7% from May 2020.
Although some agents see storm clouds on the horizon, as evidenced by declining performances, Abrams predicts that the Metro Denver housing market will continue to warm and set records. Buyers will need to be protected, or risk ending up as dried tumbleweeds stuck on the fences of homes they will never have.
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