July Home Sales Shatter Records; Nearly Double from May to July Driving Median Pricing to Record Highs Across Colorado
Contact: Marty Schechter for CAR
303-882-4585 cell firstname.lastname@example.org
ENGLEWOOD, CO – Aug. 12, 2020 – A record number of single-family homes sold in July have shattered state records and driven median home prices to record highs as well, according to the latest monthly housing data from the Colorado Association of REALTORS® (CAR). Despite another strong month of new listings, a third straight month of record-setting pending and under contract homes is likely to keep the low inventory environment a significant obstacle in the market for the foreseeable future.
A record 10,771 single-family sold listings, up 15.7 percent for the month and more than 21 percent year-over-year, took place across Colorado in July. Of those, 6,500 happened in the seven-county Denver metro area, up just shy of 14 percent from June to July and +20.4 percent from July 2019. And yet, despite another impressive month of new listings, 11,417 statewide, 6,836 in the metro area, a third straight month of pending/under contract properties matched those new listings step-for-step driving median home prices to new record highs.
Sold Listings – Denver Metro area (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson counties)
Sold Listings – Statewide
Statewide, the median home price rose 4.5 percent from June to July to $443,925 and is up 8.6 percent year-over-year. Looking at the seven-county Denver metro area, the median home price hit $489,500, up 5.3 percent from June to July and up nearly 9 percent from July 2019.
As expected, the combination of factors continues its significant impact on inventory. Single-family active listings dipped more than 11 percent from June to July statewide and are down more than 42 percent year-over-year. In the Denver metro area, single-family active listings were down 11.6 percent from June to July and were off 47 percent from July 2019.
Pending/Under Contract – Denver Metro area (Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson counties)
Pending/Under Contract – Statewide
“Many national economists predicted, back in the midst of our quarantine, that our typical spring selling season would move into the summer months and the July statistics for the Denver metro region would confirm that prediction. We saw an 11.8 percent increase in single-family new listings compared to last July, with the townhouse/condo market rising 19.5 percent. These are the numbers we would have expected to see in March and April during a normal market. Despite the inventory increase in July, the robust buyer activity continues to consume any and all new listings that are priced appropriately within 30 days of coming on the market. This market continues to be a challenge for buyers, as they have fewer properties to choose from, competition is fierce and the average and median prices continue to move upward.
“For sellers, assuming they have located their future housing, it’s a great opportunity to reap the benefits of strong appreciation. Single-family homes have appreciated 5.7 percent year-to-date compared to last year and townhouse/condos have seen a 6.2 percent increase in the median sales price year-to-date. Interest rates are at record lows, which is a definite help to the affordability challenge. Lastly, it is important to note that closed sales were lagging behind the past several months and we experienced a huge increase in transactions getting to the closing table in July, with a 20.4 percent increase in closed transactions for single-family and a 19.6 percent increase for townhouse/condos, compared to July 2019. With overall housing activity continuing to be strong, August should look a lot like April and May generally did,” said Denver-area REALTOR® Karen Levine.
Taking a look at some of the state’s local market conditions, Colorado Association of REALTORS® market trends spokespersons provided the following assessments:
“COVID has not slowed the Aurora/Centennial markets in any way as sold listings rose significantly across all zip codes and inventories dipped as much as 40 to 60 percent, depending on the location. The City of Aurora is experiencing an inventory shortage of nearly 44 percent, with the number of solds up 20.5 percent. The month of July delivered 629 sold homes compared to 539 at this time last year. It stands to reason that the median sales price is up to $417,000 driven by the continued low inventory and high demand. Townhomes/condos are seeing the same scenario with decreased inventory, increased volume of solds and median price up 9.1 percent.
“Centennial’s inventory shortage, down 58 percent from a year ago, is higher than what is seen in Aurora. S