As impacts of the historic pandemic are becoming only slightly clearer, national economists are attempting to crystal-ball short- and long-term forecasts regarding both commercial and residential real estate markets. Since mid-March, IRES has been gathering statistics on a weekly basis to monitor activity through Colorado’s Stay-at-Home orders and Safer-at-Home recommendations. The statistics focus on residential, single-family properties which represent the majority of available inventory in northern Colorado.
“Housing sales and purchases are one important barometer for considering the health of the economy, and the frenzy to decipher the latest data has reached peak levels nationally,” said Lauren Hansen, IRES CEO. “The IRES data seems to offer hope to agents, brokers, and potential home buyers as it points to increasing inventory.”
Hansen has over 35 years in the real estate industry and has been at the helm of IRES since it was formed in 1996. In addition to presenting data depicting an uptick of homes being put on the market, she noted that data comparing March, April and May of 2020 to the same time frame a year ago showed consistency between the two years despite the COVID-19 impact this year. “The data is nearly identical comparing 2019 to 2020 for DTO (Days to Offer) and DTS (Days to Sale),” said Hansen.
According to the IRES data, the average Days to Offer (DTO) is at 31 in 2020 compared to 32 days in 2019. The timeframe when the property listed to closing— Days to Sale (DTS) —is 77 days in 2020, while it was 74 in 2019.
Pending properties saw their lowest tallies throughout April 2020, roughly half of the activity recorded during the same time in 2019, but have picked up noticeably in May.
“Under Contract or Pending properties signal closings in the pipeline for weeks and months to come. Seeing these numbers rebound is a sign of a healthier market,” said Hansen.
New listings took a dip during early and mid-April, parallel to the Stay at Home orders when in-person showings were restricted. Since then, for the past 2 weeks, new listings have surged upward, increasing available inventory for prospective buyers.
“Have we reached the lowest point? Recent numbers seem to point toward ‘yes’ but as the circumstances around us continue to shift as never before, the market will undoubtedly continue to respond, and IRES will continue to monitor and analyze the situation,” said Hansen.