Halloween wasn’t the only thing that looked different in October. As families found new ways to trick-or-treat and households got creative passing out candy, Denver’s real estate market showed no signs of slowing down as it typically does this time of year. Instead, October was another record-breaking month.
According to the Denver Metro Association of Realtors (DMAR) Market Trends Report, the average single-family home sold for $625,100 in October—breaking July’s record when the price exceeded $600,000 for the first time. The average price for a single-family home jumped 18 percent year-over-year from $529,554 in October 2019.
But it wasn’t just single-family homes selling at record prices. Attached properties—think condos and townhomes—also sold for a record $393,733. That’s up nearly 8 percent year-over-year and nearly 5 percent from September, according to the report.
“We’re kind of defying seasonality,” says Andrew Abrams, chair of DMAR’s Market Trends Committee. “The market continues to stay incredibly hot.…Buyer demand has not changed at all. And then on the supply side, people are continuing to not put their houses on the market as much as you know, historically.”
Indeed, inventory hit a record low in October, as well. Abrams says if no new homes come on the market, inventory would be sold out in approximately three weeks. Last month ended with 4,821 active listings, down nearly 44 percent from last year. This is the lowest amount of inventory for any October on record by nearly 2,000 properties, according to the report.
As inventory levels remain low and prices continue to soar, buyers are stuck putting in multiple offers, often above asking price. The average close-to-list price for all residential properties is slightly above asking, a similar trend seen in August. Abrams says if a buyer is looking at homes under $500,000, they can expect to offer tens of thousands of dollars above asking price. “There is no rest for the weary,” says Nicole Rueth, a DMAR Market Trends Committee member. “Whether you’re a buyer or a seller, right now seems to be a turbulent, stressful market.”
Although there’s not a ton of homes for sale, people are still buying. Nearly 6,000 properties sold last month and 6,141 more are under contract. And all signs point to another record-breaking month in November, Abrams says.
The Denver metro is experiencing a seller’s market in everything but condos and townhomes priced over $1 million, which is a neutral market. Attached luxury properties sat on the market for 50 days on average in October, compared to 35 days in September. Pending sales for these properties was also down nearly 29 percent compared to September. Luxury buyers are still looking for more land, according to the report. Luxury single-family home sales were up nearly 20 percent from last month and the average days on the market dropped 8 percent to 55 days.
“The market is hot,” says Abrams, “and it seems that it will continue to go that direction.”