This is my regular update on the real estate bidding wars. I was planning to do this analysis next week, but I’ve observed a definite slowing of the market, so I moved my report to this week, analyzing the closings that occurred last Thursday, July 1st, to see how the bidding wars have evolved since my last report. To my surprise, this analysis shows only a slight slowing, likely because those listings went under contract 30-45 days earlier.
As I did in previous months, I limited my analysis to sales within a 15-mile radius of downtown Denver. I limited my search to homes, condos and townhouses that were on the MLS at least one day but not more than 6 days before going under contract, since those are the homes with bidding wars. Once again I divided the results into listings which sold for up to $500,000 and those that sold for more.
On July 1st there were 33 closings up to $500,000, compared to 40 such closings on June 10th. The median home sold for 5.9% over its asking price, compared to 6.3% on June 10th. The highest ratio this time was 20% for a bungalow in Aurora compared to 19.6% on June 10th for a condo in Golden. Four listings sold for the asking price, and three sold for less than listing price, compared to none on June 10th.
There were 44 homes that closed on July 1st for more than $500,000, compared to 37 homes on June 10th. The median home in that group sold for 7.4% over its listing price, compared to 7.7% on June 10th. Only one sold for the listing price, and not one home sold for less than the listing price. The highest overbid was 29.7% for a contemporary 1969 home on Lookout Mountain, compared to 20.9% on June 10th.
To have a statistically significant number of closings over $1 million, I analyzed the 123 closings between June 16th and July 1st. The median closing for those high-end homes was 5.7% over listing price, compared to 6.1% from June 1-13. Fifteen homes sold for the listing price and 9 homes sold for less than the listing price. The highest overbid was for a 1985 home in “The Ridge” south of downtown Littleton which was listed at $900,000 and sold in five days for $1,200,000, 33.3% over listing price.
Note: 27 of the 123 homes that sold for over $1 million were listed for under $1 million.