Year 2020–one that we’ll never forget in so many ways–has been quite a roller coaster for the real estate market. Here’s a time-lapse:
- The market started out strong in January and February, with prices climbing nearly 7% over the first two months of the year.
- Values dropped 4% through the stay-at-home order.
- Values then rose nearly 11% from the COVID low to an average metro Denver sale price of $606,000.
- So far, year over year, we are up 10% in 2020 over the highs of 2019!
Typically, the real estate market is explosive in the spring, and the summer months slow because moves are difficult as families juggle daycare, summer sports, and vacation schedules. Since this year’s spring was cancelled across the board, summer 2020 saw two markets’ worth of people wanting or needing to move, overlapping and causing a mini real estate explosion.
Record-low interest rates (Conrad just refinanced his home with a 15-year mortgage at 2.5%!), coupled with extremely low inventory, caused sale prices to spike. In fact, the number of active single-family home listings on the market on August 31st this year was only 3,305, down 50% from the same period last year! Historically, an inventory of 16,000 homes was considered a balanced market, and we are nearly down to 3,000 homes across the metro area.
It has always been generally understood that people typically don’t choose to move. Moving is hard work, and very stressful. Usually a move is motivated by a job transfer, growing family, death in a family, divorce, better schools, etc., which forces the move. This year, office buildings closed and many companies moving to a permanent flex-schedule or remote working structure. Many of our clients are calling for help as they realize they need something different or can now live wherever they want since they aren’t tied geographically to their office location. We have seen clients move to the mountains, out of state to be closer to family, upgrade to larger homes or yards, etc. The pandemic caused a lot of introspection, and people are choosing to change their lives on many levels, including figuring out not only where they want to live, but how they want to live.
If you are reevaluating your current living situation and want to talk through different scenarios, please give The Steller Group a call at 720-593-9355 so we can help! It is what we love to do.