The Denver real estate market, based on my own analysis of REcolorado listings, showed continued strength last week, despite the imposition of a statewide stay-at-home order by Gov. Jared Polis that Tuesday.
To my surprise, despite the growing COVID-19 threat with all its expected economic impacts, a total of 1,799 listings went “active” on REcolorado last week — that is, between Sunday the 22nd and Saturday the 28th.
Although 53 of those new listings were taken off the market the same week — likely because of the stay-at-home order — and 24 of them were entered as “sold” without ever being active, that left 1,722 new listings on the market, and 387 or 22.5% of them were under contract by week’s end. That does not sound to me like a real estate market that is stalling because of the COVID-19 virus.
It makes me wonder about those 53 listings that were pulled off the MLS because of the stay-at-home order. How many of them would have been under contract by now had the sellers and their listing agents not been overly cautious?
The homes that went under contract within their first week on the MLS ranged from a 2-bedroom, 1-bath condo for $100,000 in the Windsor Gardens senior community south of Lowry to a 4-bedroom, 4-bath home for $1.3 million in the foothills northwest of Boulder. The median price of those homes was $425,000.
To see how last week compared to “normal,” I researched the listings that were first entered on REcolorado during the same seven days in 2019.
Surprisingly, slightly fewer homes were entered on Denver’s MLS during the same 7 days a year ago — 1,727. Of those, only 12 were taken off the MLS that same week. Another 73 were entered as “sold” that week. Of the remaining 1,642 listings, 670 or 40.8% went under contract within a week. That’s much higher than the 22.5% this year, but consistent with the slowing of the market which we saw before the advent of the virus. Those 670 listings which went under contract within 7 days last year ranged from a $95,000 condo in Aurora to a $1.5 million dollar 6-bedroom home in South Boulder. The median listing price was $395,000.
As you might guess, I was concerned about whether the new Lakewood ranch listed by me last Wednesday would get any showings, since showings didn’t begin until Friday, three days after Gov. Polis instituted the stay-at-home order. I needn’t have worried. We had five showings by Sunday, with one agent calling to ask if we had any offers yet because his buyer was interested in submitting an offer.
Also on Sunday, a buyer I hadn’t heard from in months called about seeing a new listing. I set a showing for that afternoon, and the buyer is considering making an offer.
All in all, then, this market continues to surprise me. While it is slower in terms of activity, there are still many serious buyers willing and able to make offers on new listings. Those buyers who are unable or afraid to make an offer, whether for economic or health reasons, are not calling us. Agents might appreciate the fact that only serious and qualified buyers are going to call about seeing homes for sale.
Meanwhile, sellers who want to sell should recognize that there are serious and qualified buyers out there and consider putting their home on the market. Just make sure you use an agent like us at Golden Real Estate who does narrated video tours of listings.