Real Estate and COVID-19, A Changing Reality

A Changing Reality

How our reality has changed. Toward the beginning of March, the Denver Metro spring market was giving indications of being one of our best. Before the month was over, we were all thinking about what was ahead for us, the real estate industry and our nation.

We are all attempting to make sense of how to endure the financial changes brought about by the COVID-19 virus and the subsequent statewide stay-at-home request. Luckily, our business has been deemed essential.  Our first priority is the health of our clients and the communities that we all live and work in.  There are individuals out there who need to purchase a home and other people who need to sell, so we keep on working. In any case, the manner in which we carry out our responsibilities has changed.

A New-Age Home Buying Experience

We have entered the age of virtual tours, videos and FaceTime walk-throughs for marketing so buyers don’t have to enter properties unless they truly think it might be the one they want to buy.  We are also completing transactions at no-contact, curbside closings and have a new contract called the COVID-19 Addendum while following CDC regulations to follow when listing and showing homes.

Real Estate is Still SAFELY Chugging Along

Although it’s different, real estate is still being transacted in the Denver Metro area.  There were 30.24 percent new listings added to the market in March, which pushed the number of active listings at months end up 19.46 percent to 5,776.  This jump in inventory may spark anxiety that we are on our way back to the huge excess inventory days of the last recession, but to put it into perspective, that is 8.20 percent fewer active listings than the same month last year and all price ranges are still in a seller’s market.

We saw a new record this month with the average close price for all attached and detached homes sitting at $513,526.  This is the first time that’s topped the half-million-dollar mark.  With the number of pending contracts increasing to 8.03 percent month over month, there was an increase of 12.02 percent more sales.  Houses are selling 23.68 percent faster, an average of 29 days, compared to 38 in the prior month. The last week of March was certainly different than the first and April will be unlike any other we’ve experienced.  As we move into the coming months, rest assured that we are monitoring the situation and we will be keeping a close eye on the market.  We are always here to answer any real estate questions and to address your needs and concerns. Stay well!  We will get through this together!

Average Single Family Home Price: $567,382
Average Condo Price: $386,344
Total Number of Properties for Sale: 5,776
Average Days on Market: 29

Sources and references include ReColorado, DMAR, and 360dwellings Real Estate