Q3 Market Trends Report 2020 | Alex Reber
As the summer months of 2020 come to a close, social and political unrest, demonstrations, riots, and COVID-19 have created more turbulent conditions in markets around the globe, while Colorado became a hotbed for those seeking more space and fewer neighbors around them. Folks from large metropolitan cities like NYC, Chicago, Miami, San Francisco, and LA are cashing out of their homes, bringing loads of cash to put down on a home in Colorado with them, creating more competition in an already tough buyers’ market. Typically, activity along the Front Range will slow as days get shorter and temperatures drop, but as with most things in 2020, do not expect the expected. Recent national headlines read that “Denver suddenly has one of the most competitive housing markets in America” and “September resulted in the toughest market to buy a house in Denver metro’s history”. Following the data, this is true and there may not be a slow down as we head into 2021. Statistically, the Denver metro area saw median home prices cross $600,000 in Q2, bringing more affordability concerns that were already keeping out some potential homeowners. These numbers may stabilize, or come down, through the last quarter of the year but 2021 will surely bring high demand and low inventory, which is the recipe for increasing pricing. At the end of Q3 ’20, homes were selling for a higher price (and in less time, year-over-year), while at times throughout the summer closings were down month-over-month. This may be a direct reflection of buyers not wanting to get out in the world to view homes and seller’s nervousness around people entering their homes. Overall, there were 30% more closings this year over last, with 24.5% of closed transactions selling for full price, and 44.8% selling for over asking price. Look for these trends to continue into 2021, and for growth to continue in most corners of Colorado for the foreseeable future.
As the summer months of 2020 come to a close, social and political unrest, demonstrations, riots, and COVID-19 have created more turbulent conditions in markets around the globe, while Colorado became a hotbed for those seeking more space and fewer neighbors around them. Folks from large metropolitan cities like NYC, Chicago, Miami, San Francisco, and LA are cashing out of their homes, bringing loads of cash to put down on a home in Colorado with them, creating more competition in an already tough buyers’ market.
Typically, activity along the Front Range will slow as days get shorter and temperatures drop, but as with most things in 2020, do not expect the expected. Recent national headlines read that “Denver suddenly has one of the most competitive housing markets in America” and “September resulted in the toughest market to buy a house in Denver metro’s history”. Following the data, this is true and there may not be a slow down as we head into 2021.
Statistically, the Denver metro area saw median home prices cross $600,000 in Q2, bringing more affordability concerns that were already keeping out some potential homeowners. These numbers may stabilize, or come down, through the last quarter of the year but 2021 will surely bring high demand and low inventory, which is the recipe for increasing pricing.
At the end of Q3 ’20, homes were selling for a higher price (and in less time, year-over-year), while at times throughout the summer closings were down month-over-month. This may be a direct reflection of buyers not wanting to get out in the world to view homes and seller’s nervousness around people entering their homes. Overall, there were 30% more closings this year over last, with 24.5% of closed transactions selling for full price, and 44.8% selling for over asking price.
Look for these trends to continue into 2021, and for growth to continue in most corners of Colorado
for the foreseeable future.
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2020 Q3 MADISON & CO.
MARKET REPORT
DENVER METRO AREA REAL ESTATE RECAP
QUARTER THREE
ALEX L. REBER
REALTOR®, Madison & Company Properties
720-466-3715 | Alex@MadisonProps.com
www.madisonprops.com
As the summer months of 2020 come to a close, social and political unrest, demonstrations, riots, and
COVID-19 have created more turbulent conditions in markets around the globe, while Colorado became a
hotbed for those seeking more space and fewer neighbors around them. Folks from large metropolitan cities like
NYC, Chicago, Miami, San Francisco, and LA are cashing out of their homes, bringing loads of cash to put down
on a home in Colorado with them, creating more competition in an already tough buyers’ market.
Typically, activity along the Front Range will slow as days get shorter and temperatures drop, but as with most
things in 2020, do not expect the expected. Recent national headlines read that “Denver suddenly has one of the
most competitive housing markets in America” and “September resulted in the toughest market to buy a house in
Denver metro’s history”. Following the data, this is true and there may not be a slow down as we head into 2021.
Statistically, the Denver metro area saw median home prices cross $600,000 in Q2, bringing more affordability
concerns that were already keeping out some potential homeowners. These numbers may stabilize, or come
down, through the last quarter of the year but 2021 will surely bring high demand and low inventory, which is
the recipe for increasing pricing.
At the end of Q3 ’20, homes were selling for a higher price (and in less time, year-over-year), while at times
throughout the summer closings were down month-over-month. This may be a direct reflection of buyers not
wanting to get out in the world to view homes and seller’s nervousness around people entering their homes.
Overall, there were 30% more closings this year over last, with 24.5% of closed transactions selling for full price,
and 44.8% selling for over asking price.
Look for these trends to continue into 2021, and for growth to continue in most corners of Colorado
for the foreseeable future.
THESE STATS ARE BASED ON THE FOLLOWING 11 COUNTIES:
Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas,
Elbert, Gilpin, Jefferson, and Park County.
Residential
Detached
Average Sales Price
Year-To-Date
$571,773
2019
$537,196
2018
$525,992
Q3 MARKET REPORT - 2020
JULY 2020
Active
New Listings
Under Contract
Closed
Avg Days on Market
Average Sold Price
MONTH END
4,001
5,270
5,128
4,806
24
$601,863
YEAR AGO
6,741
4,701
3,978
4,259
24
$547,537
% CHANGE
-40.65%
+12.10%
+28.91%
+12.84%
0.00%
+9.92%
RESIDENTIAL DETACHED
AUGUST 2020
Active
3,305
6,645
-50.26%
New Listings
4,773
4,687
+1.83%
Under Contract
5,265
3,925
+34.14%
Closed
4,303
4,045
+6.38%
Avg Days on Market
23
30
-23.33%
Average Sold Price
$606,330
$532,801
+13.80%
SEPTEMBER 2020
Active
3,041
6,523
-53.38%
New Listings
4,435
4,273
+3.79%
Under Contract
4,595
3,638
+26.31%
Closed
4,206
3,570
+17.82%
Avg Days on Market
22
33
-33.33%
Average Sold Price
$599,418
$530,786
+12.93%
MADISON & COMPANY PROPERTIES
Residential
Attached
Average Sales Price
Year-To-Date
$375,846
2019
$364,380
2018
$352,569
Q3 MARKET REPORT - 2020
JULY 2020
Active
New Listings
Under Contract
Closed
Avg Days on Market
Average Sold Price
MONTH END
2,448
2,350
1,994
1,858
26
$383,174
YEAR AGO
2,618
1,934
1,627
1,666
29
$360,772
% CHANGE
-6.49%
+21.51%
+22.56%
+11.52%
-10.34%
+6.21%
RESIDENTIAL ATTACHED
AUGUST 2020
Active
2,191
2,705
-19.00%
New Listings
2,013
2,055
-2.04%
Under Contract
2,058
1,596
+28.95%
Closed
1,656
1,674
-1.08%
Avg Days on Market
24
33
-27.27%
Average Sold Price
$377,664
$371,518
+1.65%
SEPTEMBER 2020
Active
2,260
2,763
-18.20%
New Listings
2,021
1,777
+13.73%
Under Contract
1,781
1,397
+27.49%
Closed
1,644
1,451
+13.30%
Avg Days on Market
25
32
-21.88%
Average Sold Price
$384,397
$357,336
+7.57%
MADISON & COMPANY PROPERTIES
MARKET TRENDS
LUXURY MARKET
Residential Properties Sold at $1 Million and Above
Avg. Days on Market
List Price / Close Price
Price Per SF
Total Sales Volume
YTD
53
97.64%
$337.00
$3,328,598,551
2019
59
97.47%
$335.00
$2,892,036,605
SIGNATURE MARKET
Residential Properties Sold Between $750,000 and $999,999
YTD 2019
Avg. Days on Market
List Price/Close Price
Price Per SF
Total Sales Volume
41
99.17%
$251.00
$2,600,677,576
42
98.92%
$248.00
$2,137,407,007
PREMIER MARKET
Residential Properties Sold Between $500,000 and $749,999
YTD 2019
Avg. Days on Market
List Price/Close Price
Price Per SF
Total Sales Volume
31
99.80%
$220.00
$7,372,568,653
36
99.20%
$214.00
$6,080,890,304
Q3 MARKET REPORT - 2020
SUPPLY AND DEMAND
A Decade of
Supply and Demand
in Denver Real Estate
MADISON & COMPANY PROPERTIES
Metro Denver
Economic Indicators *
UNEMPLOYMENT RATE
7.3% YTD
As of September 2020, the YTD Colorado
Unemployment Rate was 7.3%, which is up 4.5
percentage points from 2019 YTD average.
COMPANIES HIRING
21% in September 2020
Companies hiring fell 6 percentage points from Q2 2020 to
Q3 2020. Companies hiring in the Denver area YTD average
is down 4 percentage points compared with 2019.
* Metro Denver Economic Indicators: Monthly Economic Indicators for September 2020 (http://www.metrodenver.org/researchreports/monthly-economic-indicators/).
** Median US Home Value from Zillow Home Values, data through September 30th, 2020.
Q3 MARKET REPORT - 2020
MEDIAN PRICE FOR
EXISTING HOMES
$478,400
National **
ECONOMIC INDICATORS
RESIDENTIAL BUILDING PERMITS
9,785 Permits YTD
Permits decreased 20.8% from June to July,
and YTD permits were down 14.6% through
July 2020.
APARTMENT VACANCY RATE
5.5% YTD
Vacancy decreased 0.8 percentage points from
Q1 2020 to Q2 2020, and the YTD average is up
0.3 percentage points from last year.
MADISON & COMPANY PROPERTIES
© October 2020 Madison and Company Properties, LLC. Madison and Company Properties is a registered trademark licensed to Madison and Company Properties, LLC. Locally owned and operated. An equal opportunity company. All information and data deemed
reliable but not guaranteed. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Sources: July, August, September 2020 DMAR Market Trends Reports. All data presented in this report was provided by REColorado. The data
was pulled at 9:00AM (mountain time) on the first day of the month for the preceding month(s). All rights reserved to Denver Metro Association of REALTORS®. Image Sources: Front & Back Cover: 9371 Pinyon Trail, Exclusively Listed by Tina Christensen. Page
3: 271 N Ridge Road, Exclusively Listed by Paulette DePumpo. Page 4: 1595 S Milwaukee Street, Exclusively Listed by Ryan Mutschelknaus. Page 6: 3246 S Lincoln Street, Exclusively Listed by Karen Anderson. Page 8: Luxury Market: 1980 E Belleview Court,
Exclusively Listed by Larina McClain with The McClain Group, Madison & Company Properties. Signature Market: 1312 Forest Trails Dr, Exclusively Listed by Kristen Narlinger. Premier Market: 4353 Mt Shavano Street, Exclusively Listed by Amy Flora. Metro
Denver Economic Indicators: Monthly Economic Indicators (http://www.metrodenver.org/research-reports/monthly-economic-indicators/). ** Median US Home Value from Zillow Home Values, data through September 30, 2020.
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