It is still very early to measure the true impact of the coronavirus on the Denver Housing Market according to local real estate agents. We can look at what happened in April 2020 to start to uncover possible trends. We are seeing low inventory, decreased days on market, increased year to date sales prices, and a slight increase in sales prices. 

The average price of a home decreased by 0.1% when compared to Aril 2019. However, the median home price actually increased by 2.7% to $457,000. New listings were down 37.0%. The number of homes that were sold was also down at -22.7%. Inventory of active listings is also down by 20.0%

The coronavirus would appear to be putting added stress on inventory and market numbers across the board. According to Jennifer, an agent of 16 years in Denver “Sellers are choosing not to list at the moment, so there is nothing for buyers to buy. Therefore, it makes sense that the number of listings and the total number of properties sold are down”. She is hoping for a rebound as fears about the coronavirus, restrictions, and possibly a vaccine is found. 

Rick, an agent-based in Cherry Creek, an exclusive area of the Denver Market, stated “The longer the shutdown the bigger the impact. It is a little wait and see. My main advice to people right now is, despite the coronavirus, if you want to sell you still can. It just takes a little more care and planning.”

Prices in Denver, CO - SFH. 

Denver Metro area median home prices increased by 2.7% - from $445,000 to $457,000 in April 2020. The year to date median house price has increased to $455,000. This is compared to $429,900 for the same time period last year. 

The average home price has seen a slight dip from this time last year. April 2019 was $528,048 while April 2020 was $527,332. The average year to date price, however, has seen a rise from $505,855 up to $527,855. This is a 4.3% increase compared to 2019.

“Clearly house prices are not falling significantly and there are alot of positives to be seen in these numbers. I remain optimistic that the housing market and US economy will weather this storm” said Rick.

Sales In Denver, CO - SFH.

The number of homes sold in April 2020 was 3,506. This represents a decrease of 22.7% compared to April 2019. The number of homes that sold year to date as of April 2020 is 13,948 which is a decrease of 3.1% percent compared to April 2019.

A home goes pending/under contract when the seller has accepted an offer. This precedes the sale of the house and can be an indication of next month’s sold figures. 

Houses going under contract has seen a decline year on year and year to date. The total number of houses that went pending in April 2020 was 3,196. In April 2019 we saw 5,388 go pending. This is a decline of 40.7%.  Year to date 15,153 SFH has gone pending compared to 17,081 for the same period last year. This represents a drop of 13.3%

Inventory In Denver, CO - SFH.

The inventory of homes for sale in the Denver metro area declined to 6890 homes in April 2020 which is a decline of 16.2% compared to April 2019.

Days On Market in Denver, CO - SFH.

Days on market is defined as the number of days from the time the home is placed on the market until the day the home is placed in the pending status (seller has accepted an offer).

The days on market in April 2020 decreased to 25 days which is a decrease of 21.9% compared to April 2019. The days on market year to date as of April 2020 decreased to 37 days which is a decrease of 5.1% when compared to April 2019.

Absorption Rate in Denver, CO - SFH

The absorption rate is defined as the number of months it would take to sell the current inventory if the number of homes sold continued. A lower number generally means the market is tight and homes are selling fast. The absorption rate in Denver for April 2020 was 1.6 which is a decrease of 20% compared to April 2019.

When asked about the overall state of the housing market in Denver Jennifer responded “The current report sends mixed messages. House prices are remaining strong. I believe there is further pent up demand due to the coronavirus restrictions. Combined with very low inventory and interest rates I believe now is still a good time to sell your house in Denver.”

All data comes from the National Association of Realtors (NAR) and the Colorado Association of Realtors. 

About the author: My name is Shaun. I am a real estate expert headquartered in Denver, CO. I have spent the past 15 years helping people find homes and real estate investments in Denver, CO, Port Richey, FL, and Indianapolis, IN. My current focus is on finding off-market properties, lending, and Self Directed IRA Investing in the real estate industry.