Insights from BSWMarket

May Market Update

By May 6, 2021 No Comments

This month, we look to our Employing Broker and Chair of the DMAR Market Trends Committee, Andrew Abrams, for a deeper dive into the market. To read DMAR’s full official report, visit this link.

 

“As we reflect on this month’s market trends report, it is important to remember where we were last year at this time. April of 2020 was a month of confusion, fear and uncertainty. The ebbs and flow of being an “essential” worker were reflected in new listings last year, which were down 43.02 per- cent compared to April of this year. Since last year, we have seen a steady rise in competition and therefore prices. With only two weeks of inventory, prices continue to be on the rise. The attached market saw a month – over – month appreciation of 7.30 percent, while the detached market saw an increase of 4.28 percent. The explanation for these stats could be as simple as the attached market has a more approachable price point. The average purchase price of a single – family detached property in the Greater Denver Metro area is $699,039. With prices on the rise, education, strategy and expectations have never been more critical for a buyer approaching this market.

 

.The question has become whether we are in an inventory shortage or a market based on hyperactive buyer demand. While the consensus is that there is more buyer demand than inventory, both the limited inventory and over – supply of buyers have made this market what it is today. Months – end active inventory did increase by 35.03 percent. There were still only 2,594 active properties at the end of the month, representing the lowest April on record and 48.38 percent less inventory than the previous April low in 2015. As spring turns into summer and large gatherings, sporting events and concerts start to open up again, it will be interesting to watch how individuals adjust. Will demand increase for cities, or will there be continued migration to the suburbs?

 

.We have seen the residential real estate market drive 90 mph for almost a year now. Year – over – year appreciation has been staggering, increasing 24.20 percent and we’ve shifted from measuring inventory in months to weeks or even days with properties flying off the market. Buyers are feeling frustrated but also determined and hopefully, successful. What happens when you take your foot off the gas going 90 mph? You don ’ t go into reverse (could you imagine?) You simply keep moving forward at a slower pace. We are racing into summer and starting to see normal seasonality in our market, which explains the increased months – end active inventory. Even if there is an adjustment, it is more likely that we will see someone take their foot off the gas than all of a sudden go in reverse on the real estate highway.”

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DMAR MARKET TRENDS | FEBRUARY 2021© 2021 COPYRIGHT | All rights reserved to Denver Metro Association of REALTORS®,
The Voice of Real Estate® in the Denver Metro Area

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