It just won’t stop, where will we see shift?
Rates dropped, again. With rates dropping to lowest historical levels, buyer affordability remains stale if not better despite significant appreciation over last year. We’re in a market where sellers are experiencing some of the best conditions and favorability when listing right now, but also buyers can buy at higher price points from enhanced affordability.
What might happen heading into the 4th Quarter and the election?
In previous years Colorado has seen minimal impact and shift as it relates directly to the Presidential Election. In 2020 style, this year is certainly different. Due to social, political unrest, demonstrations, riots and of course COVID-19 we have experienced more turbulent conditions and it will be challenging to separate each of these issues to measure their independent effect.
In years past, the only affected homeowner pool have been those with higher net worth, and/or those using jumbo financing and relying on their assets to make a purchase. Hand in hand with election season comes stock market volatility- and those who have more substantial investments than average are more likely to press pause to see how the election plays out. Be sure to tune into my weekly market update on Friday’s at 10:00AM to catch the play by play every 7 days.
Detached Single Family Highlights:
Active inventory remained flat month-over-month up by +1.0%, also down from the same month one year ago by -50.7%. Inventory for the month of September was 2,820 units for sale.
Contracts accepted, or pending sales, decreased by -12.9% and were up from the same month one year ago by 18.5% with 4,808 contracts accepted in Metro Denver.
Closed units slowed month-over-month by -2.1% but were up +30.0% from the same month one year ago.
Days on market held fast at 21 days on market as an average, as did median days on market, coming in at 6 median days to contract.
Flash sales- or units pending after just one week on the market were reported as 58.4% of all detached units closed in September.
The competitive nature of the market post COVID-19 quarantine in September reported that 24.5% of closed transactions sold for a full price offer with 44.8% sold for over asking price.
Even though average home prices appreciation was up YOY to $591,231- when coupled with the recent drop-in interest rates a 30-year fixed loan with 10% down will yield principal and interest payments of $2,207; which is -0.4% less than purchasing an average priced home one year ago.
Attached Single Family Highlights:
Please be sure to spend some time each Friday from 10-11AM reviewing the weekly COVID-19 report so you have the most current information we can provide. New webinar registrations will be sent out for October dates next week. Due to changes in Zoom I need to make some modifications that will allow us to live stream on social media. Please be on the lookout for those on Wednesday.
Thank you for the opportunity to rise to the occasion as your real estate trend-tracker of choice, and I hope to see your clients at our closing tables in the future!
We’ll see you soon.
Megan Aller
Account Executive
MOBILE 720.229.6641
maller@firstam.com
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