eXp Realty Colorado Real Estate Market Report
This eXp realty Colorado monthly report indicates that summer in the Denver Metro Area is showing positive trends on many fronts. More consumers are enjoying the great outdoors. A snowy and rainy spring has led to Denver’s wettest start in over 70 years even though warmer temperatures may be here for the next couple of months.
Gain insights into what’s happening in the Colorado real estate market in this eXp realty Colorado monthly report from Realtor® Sam Wilson based on statistics from the Denver Metro Association of Realtors Market Trends Report that you can read in its entirety.
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- Are home sales in the eXp realty Colorado real estate market leveling off?
- Is the decrease in mortgage applications indicative of home buyers tiring of competing for homes over listing price or something else?
- What factors might be affecting Colorado real estate sales?
eXp Realty Colorado: Sam Wilson’s Market Report for June 2021
This metro Denver Colorado, housing market outlook offers insights and predictions about the metro area’s real estate market, including Arvada, Golden, and Lakewood, Colorado. This housing market update is for the Denver metro area consisting of eleven counties unless otherwise specified. A full copy of the market report is included each month in this update. Refer to the link above.
Residential Closed Home Sales for Jefferson County Colorado and the Denver Metro Area
The number of closed home sales during the month of June 2021 was 6,189, up from May by +9.29% and only slightly down from June 2020 by -0.88%. Total home sales in Jefferson County Colorado were 1,211 with Arvada leading at 291, Lakewood at 283, and Golden at 104.
The average days that a home is on the market in the MLS for detached homes remained steady at eight days which was the same for May. In June, attached homes (condos and townhomes) on the market declined by 17.6% to 14 days down from 17 in May.
Are homebuyers more strongly considering condos and townhomes at more affordable prices in the Denver metro area? The average price for attached homes averaged $440,000 versus detached home prices averaging $728,385.
- How much is price a factor in buying your next home?
- Is size or location still the most important desire for homebuyers?
- Is the inventory of homes for sale beginning to keep up with demand with sales year over year decreasing by only -0.88%? So many questions!
Will Mortgage Demand Continue to Drop?
What’s happening with consumer demand for home mortgages?
Weekly mortgage demand falls nearly 7% as home price growth hits record high according to a CNBC video report
The news reports that the market for new homes is witnessing skyrocketing price increases as the result of rising material costs across the United States. Are builders waiting to frame houses so that they have the most current material cost before accepting buyer offers?
Reports are rising about home buyers backing out of deals for new construction homes for which the cost of materials has added substantially to the purchase price. The rising cost of lumber alone has added $36,000 on average to the cost of a new home.
- What other factors might be delivering the drop in mortgage demand?
- Are buyers becoming more price-sensitive or are they more willing to take a wait-and-see attitude?
- Will there be fewer bidding wars and a return to more reasonable prices coming soon?
- Are potential home buyers waiting for home foreclosures to return due to job losses and income challenges posed by the pandemic?
- Will Colorado and other states raise property taxes to fund lost revenue? Will rising taxes make buying a home more challenging for first-time buyers?
Last month’s eXp realty Colorado market report featured information about the potential of mortgage forbearance and discussed the possibility of an increase in short sales of homes in the last two quarters of 2021 and into 2022. How are mortgage companies preparing for the potential of foreclosed homes and short sales?
Median Closed Prices Are Beginning to Level Out
Real estate prices for residential homes in the Denver metro area increased by 22.47% versus one year ago. However, the June median closed price of $545,000 was only slightly higher than May by $5,000. The median closed home price in April 2021 was $526,000.
For definitional purposes, the median is the number in the middle. Meaning an equal number of homes above and below the median price.
The increase in price by only $5,000 (I know, only!) may indicate that more homes are be selling in the affordable price ranges. The coming months will tell if we will continue to see hefty gains of 5% or more month to month in median housing prices as seen earlier in 2021.
- Is it possible that supply is beginning to catch up with pent-up home buyer demand?
- Is the market shifting to a more equal balance between market value and what home buyers are willing to pay?
It’s possible that we may have a better indicator for many of these questions in next month’s eXp realty Colorado report along with indicators of what can be expected for Denver metro real estate during the fall months.
Average Home Closed Prices
The average home closed price for detached homes in June was $728,385, an increase of 4.14% versus May at $700, 559. The average price for attached homes (condos and townhomes) at $440,066 was -1.42% lower than in May at $449, 317.
The luxury home market, over $1 million dollars remains hot, likely driving up average home sales prices. In June the months of inventory for detached luxury homes dropped below 30 days. Sales increased by 24.3% and were up an astounding 132% year to date versus 2020.
According to the National Association of Realtors, Denver gained the most workers in the last twelve months from New York City, San Francisco Bay, and Chicago.
- Are these the home buyers who have the financial resources to buy in the luxury market or to pay well over list price—and be happy to do so?
- Will buyers from markets outside of Colorado continue to support price competition for local home buyers?
In June, the signature home market, properties sold between $750,000 and $999,000, had good news with 995 new listings on the market which was a 31.7% increase from May. The close to list price stayed consistent at 105.9% meaning that competition in this price range may be leveling out. This is more good news for Colorado home buyers.
Colorado Home Buyer Competition Remains Stiff But . . . Are Home Bidding Wars Beginning To Slow?
The number of detached and attached home active listings at the end of June increased from 2,071 in May to 3,122 in June — a 50.46% increase. Meaning more houses on the market. More houses becoming available means that more buyers have an opportunity to find the house of their dreams without paying $50,000 or more market price.
An increase in housing inventory is good news for buyers. Home sellers may have to adjust their expectations when the home doesn’t sell the first or second weekend by reducing the list price of their home. Sam Wilson and his eXp realty Colorado team speak candidly with home buyers and home sellers about Colorado market statistics and projections that the market will continue to be a good investment whether you are a home buyer or a home seller.
- Will the trend of leaving the big city for more affordable and desirable areas in the suburbs continue now that remote work has become more acceptable?
- How will remote work possibilities continue to affect where consumers live and work?
Keep Updated About the Future of the eXp Realty Colorado Market Each Month With Sam Wilson’s Report
Return to this real estate blog for the eXp realty Colorado market report each month for the latest and up-to-date information and trends from Realtor Sam Wilson. Working with knowledgeable and experienced realtors in the local Colorado real estate market will help you make the best long-term real estate investment.
Sam and the team at the Sam Wilson Group provide an honest and balanced assessment of the real estate market without all of the media hype. Call today for a free, no-obligation real estate consultation.
To Find Out What Your Home Will Sell For in This Market Or How to Save Money Buying a Home, Contact the Sam Wilson Home Selling Team Today
Receive expert real estate advice when house hunting for homes for sale in Lakewood, CO, Jefferson County, and the Denver metro area. Work with the Sam Wilson Home Selling Team. If you are thinking of buying or selling a home, we make you a priority and share our expertise to make the home buying or selling process as stress-free as possible. Read what our customers have to say about us.
The Sam Wilson Home Selling Team specializes in homes in the Denver metro area, including Lakewood CO, and Jefferson County Colorado, including Arvada, Aspen Park, Conifer, Edgewater, Evergreen, Genesee, Golden, Idledale, Indian Hills, Ken Caryl, Kittredge, Lakeside, Lakewood, Littleton, Morrison, Mountain View, West Pleasant View, and Wheat Ridge.
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