Mobility - May 2020 - Special Covid-19 Edition - 27

MARKET AT A GLANCE*
ECONOMIC CLIMATE

GOOD

NEW CONSTRUCTION

COMING BACK

REO ACTIVITY

STATISTICAL SNAPSHOT
EOY 2019

EOY 2018

CHANGE

UNEMPLOYMENT

2.3%

3.7%

-37.8%*

LOW

MONTHS OF SUPPLY

2.05

1.9

+7.9%

SUPPLY

SHORTAGE

ANNUAL SALES VOLUME

$28.7B

$26.8B	

+7.1%

DEMAND

STRONG

AVERAGE SALE PRICE

$415,000

$400,000

+3.75%

MARKET DIRECTION

UPWARD

AVERAGE DOM

34

29

+17.24%

MARKET MOOD

GENERALLY POSITIVE

*As of January-February 2020

LOOKING BACK

Statistical data courtesy of Metro Denver Economic Development Corporation and REColorado Matrix
*Unemployment change expressed in terms of overall percentage (not percentage points).

As of December 2019, unemployment claims were
5.4% lower than at year-end 2018, with a record
low 2.3% unemployment rate. However, on 17
March-a day after mandatory temporary closures
of some businesses, all restaurants, and bars were
announced-6,800 people filed unemployment
claims. Just 10 days earlier, there were only 400
claims. This rise in claims obviously impacts the
real estate market as potential buyers experience
uncertainty about their financial future.
At the end of 2019, the metro Denver reporting area saw 58,917 real estate sales, according to
REColorado Matrix MLS. This was up 4.15% from
year-end 2018. The new year started with a bang,
with January and February 2020 sales activity
ahead of prior-year reports. January 2020 reported
3,393 sales, which was up nearly 13% from January
2019, while February 2020 saw 3,839 sales, which
was up 7.9% from February 2019. These conditions
will not continue in the current economic climate.
On what may be a positive note, as of 20 March,
there had been 2,696 closings, which is ahead of
February's daily average.
Median prices in January and February 2020 were
stronger as well, compared to the end of 2019, with
February 2020 reporting a median price of $430,000,
which is up nearly 7% from February 2019. As of
20 March, the median closed price was reported at
$445,000. Most sales tend to occur in the $400,000
to $500,000 price range, followed by the $500,000 to
$600,000 price range, which reflects the region's high
median household income.
Prices have continued to trend upward due to
the shortage of inventory. As of the end of February,
there were only 7,024 active listings, which was down

15.5% from February 2019's reporting of 8,318 listings.
There were 7,480 listings and 3,677 pending sales as
of 20 March. Absorption increased from 2.4 months
to 3.2 months from February to 20 March. This could
be a result of the economic uncertainty caused by the
COVID-19 pandemic, or it could be a matter of more
homes coming on the market in anticipation of the
seasonally more active spring market.
Last year's sales volume was nearly $28.7 billion,
which was up 6.7% from 2018's sales volume of $26.8
billion. Current year-to-date sales volume is $5.2 billion.
Average days on market for 2019 was 34, compared to
29 DOM in 2018. Current DOM year-to-date is 44.
New construction permits were down 15.3% at the
end of 2019, compared to the end of 2018. However,
they had increased 70% from November 2019 to
December 2019, demonstrating builders' optimism.
REO activity continues to be minimal, with just a
slight uptick of 0.8% from year-end 2018 to 2019.

LOOKING FORWARD

The strong economic indicators of metro Denver's
foundation should help bolster the economy once
this emergency passes. There is no crystal ball clear
enough or large enough to foresee what the future
holds in light of the unprecedented health and economic impact of the current crisis. However, metro
Denver should survive this storm as well as any other
metropolitan area, due to the strength of its economy
before the crisis arrived. M
Marie Robbins-Marine is with Robbins-Marine Property
Valuation Inc. and has been performing relocation
appraisals for 35 years. She was president of Relocation
Appraisers & Consultants (RAC) in 2005. She can be
reached at +1 303 972 1916.

worldwideerc.org | Mobility 27


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Mobility - May 2020 - Special Covid-19 Edition

Table of Contents for the Digital Edition of Mobility - May 2020 - Special Covid-19 Edition

Mobility - May 2020 - Special Covid-19 Edition - Cover1
Mobility - May 2020 - Special Covid-19 Edition - Cover2
Mobility - May 2020 - Special Covid-19 Edition - 1
Mobility - May 2020 - Special Covid-19 Edition - 2
Mobility - May 2020 - Special Covid-19 Edition - 3
Mobility - May 2020 - Special Covid-19 Edition - 4
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Mobility - May 2020 - Special Covid-19 Edition - 27
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Mobility - May 2020 - Special Covid-19 Edition - 39
Mobility - May 2020 - Special Covid-19 Edition - 40
Mobility - May 2020 - Special Covid-19 Edition - 41
Mobility - May 2020 - Special Covid-19 Edition - 42
Mobility - May 2020 - Special Covid-19 Edition - 43
Mobility - May 2020 - Special Covid-19 Edition - 44
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Mobility - May 2020 - Special Covid-19 Edition - 46
Mobility - May 2020 - Special Covid-19 Edition - Cover3
Mobility - May 2020 - Special Covid-19 Edition - Cover4
https://www.nxtbook.com/ygsreprints/WERC/mobility-march-2021
https://www.nxtbook.com/ygsreprints/WERC/mobility-february-2021
https://www.nxtbook.com/ygsreprints/WERC/mobility_122020
https://www.nxtbook.com/ygsreprints/WERC/mobility_112020
https://www.nxtbook.com/ygsreprints/WERC/mobility_102020
https://www.nxtbook.com/ygsreprints/WERC/mobility_092020
https://www.nxtbook.com/ygsreprints/WERC/mobility_082020
https://www.nxtbook.com/ygsreprints/WERC/mobility_072020
https://www.nxtbook.com/ygsreprints/WERC/mobility_062020
https://www.nxtbook.com/ygsreprints/WERC/mobility_052020
https://www.nxtbook.com/ygsreprints/WERC/mobility_042020
https://www.nxtbook.com/ygsreprints/WERC/mobility_032020
https://www.nxtbook.com/ygsreprints/WERC/mobility_022020
https://www.nxtbook.com/ygsreprints/WERC/mobility_012020
https://www.nxtbook.com/ygsreprints/WERC/mobility_122019
https://www.nxtbook.com/ygsreprints/WERC/mobility_112019
https://www.nxtbook.com/ygsreprints/WERC/mobility_102019
https://www.nxtbook.com/ygsreprints/WERC/mobility_092019
https://www.nxtbook.com/ygsreprints/WERC/mobility_082019
https://www.nxtbook.com/ygsreprints/WERC/mobility_072019
https://www.nxtbook.com/ygsreprints/WERC/mobility_062019
https://www.nxtbook.com/ygsreprints/WERC/mobility_052019
https://www.nxtbook.com/ygsreprints/WERC/mobility_042019
https://www.nxtbook.com/ygsreprints/WERC/mobility_032019
https://www.nxtbook.com/ygsreprints/WERC/mobility_022019
https://www.nxtbook.com/ygsreprints/WERC/mobility_012019
https://www.nxtbookmedia.com