Historically low levels of inventory appear to be finally taking a toll on home sale activity in the Boulder/Denver Metro area with both closed and pending transactions at the end of November down significantly from the previous month, and from the same period in 2019.
In November, buyers in Denver had a tougher time than those in the City of Boulder, with almost 15 percent less homes sold, as compared to 10 percent less in Boulder.
Active listings for both detached and attached single-family homes in Boulder were down almost 19 percent and over 15 percent in Denver. In our somewhat seasonal market, the time around the holidays typically has less inventory available, and this year there will be even fewer homes for buyers to choose from.
At the end of November, there was 2.6 months of inventory for the combined residential market (single family and attached) in Boulder- although more than the 1.1 months of inventory in Denver. This means if no new homes are added to the market, the current supply will theoretically sell out in about 10 weeks in Boulder, and 4 weeks in Denver.
So… it’s tough out there!
With limited inventory and a competitive environment, Denver Metro area buyers should be prepared to lose at least one or more offers before getting a contract on their dream home. On a positive note, Denver Metro recently ranked #9 on Realtor.com's recent list of top 10 housing markets for 2021. Our outdoors-focused area has been hot for quite some time and currently gets a boost from a growing tech industry.
World-class dining, sports, entertainment, and the arts scene are all draws, especially for millennials. Both Boulder and Denver are in the top 50 cities on Niche’s recent list of Best Cities for Young Professionals in America. Boulder is #43 and Denver is #11.
We know well that Colorado definitely isn’t cheap for homebuyers, but home prices are about half of those in some of the Bay Area communities, where many millennials seem to migrate from. We must now hope that our local economy will pull through the pandemic for our area to continue to attract this highly employable millennial workforce.
According to the Colorado Business Economic Outlook released this week from the University of Colorado, the state's economy will continue its slow improvement in the new year, but our total employment will not reach pre-pandemic levels next year- and it may not get back there until 2023. All but two sectors — government and information — will increase jobs next year after every sector recorded job losses during this pandemic-stricken year.
Still, the outlook does predict those sectors that lost the most jobs this year also will be the ones that gain the most in 2021 as part of their recovery.
There is still significant uncertainty around the 2021 outlook, as economists and business leaders have yet to determine how many of the temporary changes that arose during the pandemic will become permanent.
The forecast also noted that the areas of greatest uncertainty will continue to be those areas most impacted by coronavirus restrictions this year — specifically small and medium-sized businesses, hospitality, and jobs involving lower-income workers.