As COVID-19 gripped the planet, concerns for the health of real estate crept into the minds of many Americans with skin in the game. While the U.S. economy experienced significant difficulties throughout 2020, the housing sector showed its resilience smashing records for sales and pricing as millions found themselves now working remotely, requiring new spaces to adapt and succeed.
New protocols to keep real estate as an essential service were put in place which meant every surface was to be sanitized between showings, masks, shoe covers, and gloves were required and there was a limit on the number of people that could see a home. Closings were conducted in cars, making the health of the public the primary focus. With all that in place, buyers and sellers marched on.
Remarkably, a record number of homes closed in Denver metro, a 7% increase from ‘19, while the lack of inventory continued to haunt buyers as record-low mortgage rates fueled buyer demand along with lack of new housing. While impressive, the fact remains these ingredients will lead to an increase in pricing in 2021, likely up to 10%. The average closed price in ‘20 was $525,185, up 8%, setting a new historical high and marked
the ninth consecutive year of price growth.
What will 2021 look like? This winter will be busier for local markets with home sales activity only gaining steam. Expect a persistent housing shortage that will keep home prices elevated, while sales continue to rise throughout 2021 as record low mortgage rates and teleworking give housing a continued boost. Denver’s housing market is expected to outperform national trends as a strong and diverse economy, along with favorable demographic trends seem to be the primary drivers of its strength. The good news is this will be a busy year for our industry and its recovery.
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