Denver Real Estate - April Showers Bring May Flowers
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When it comes to Denver metro real estate it looks like April showers really do bring May flowers. While we were all forced to stay inside our homes, we were unable to do showings during most of April. Yet we still managed to weather the storm putting more than 3,000 homes under contract and listing over 45 properties in the month of April. And when the restrictions on showings were lifted on April 27th, approximately 3,500 showings which no doubt stemmed from pent up demand were scheduled that day. That's more than any other Monday in 2020. Going into May, the Denver real estate market seems to be blooming with opportunity.
We're still in a seller's market in all price ranges except the luxury market. Inventory remains low with just 6,800 active homes on the market, at the start of May. We have less than three months of inventory in all price segments, under a million. In fact, detached homes priced $300,000 to $399,000, there was less than a month of inventory. For reference, we would need closer to six months of inventory to consider it a balanced market. In all segments under a million, homes are closing at 99% or better of list price, and even experiencing multiple offers in some segments.
Things look a little bit different in the luxury market, where nine months of inventory is considered a balanced market. We're hovering just over seven months of inventory for attached homes and six months for detached. Buyers in this price range have more options and ultimately more negotiating power.
Overall Denver real estate is holding its value. Our year-over-year price appreciation, as measured through the median sales price, shows gains and median close price of six and a quarter percent in February, six and three quarters in March, and six and a 10th in April. In March we hit a record average sale price of approximately $512,000 and in April, that number dipped just slightly to $503,000. Continued lack of inventory with strong demand is expected to maintain this positive appreciation. As always, homes that are priced right and staged well are moving the fastest.
While COVID still remains top of mind for both buyers and sellers, buyers are motivated by low interest rates which hit a historic low of 3.2% on April 30th. Keep in mind lenders are tightening lending requirements especially jumbo loans, so getting a pre-approved is even more important.
For your protection while we're showing homes we're operating with masks, gloves, and a lot of sanitizer. We're also utilizing virtual tours, videos and online media to minimize contact and get your property in front of buyers.
This is just a snapshot of what's happening in the Denver real estate market. If you want more detail on what the current market means for you, give me a call at (303) 585-0589, or go to my website at milenajoy.com. In the meantime, don't forget to follow me on Instagram at @milenajoy and Facebook at Milena Joy Real Estate. Thank you for listening. I'm your realtor, Milena Joy. I know, Changing where you live, can change how you live.
