Denver Home Market Sets New Record April 2021 Update

Up, up, and far – again. From the just published Denver Metro Association of Realtors April Market Trend Report, the average price for a single-family home in the Denver area currently stands at $ 674,990, an increase of over $ 40,000 from last month and over $ 100,000 from the same period there is one year old.

The shortage of available housing has caused a food frenzy which has very real consequences for people looking for their own housing.

“The residential area of ​​Greater Denver Metro has proven that buyers must make emotional decisions to rise above the competition,” notes the DMAR, “with nearly all of the statistics in the report justifying the extent of competition for. buyers as well as their distance. willing to accept their offers for housing. ”

The association describes the current scenario as an “unshakeable seller’s market,” and they have numbers to back it up. In the past, many buyers have waited until winter before becoming more serious in the spring to shop. This year, however, the generally slow and cold months have been scorching, suggesting that the next few months will be even crazier than usual.

Low inventory is definitely a big factor behind what is going on. At the end of March, active listings for single-family homes in Denver stood at 1,122, an increase of just two from February’s 1,120, but more than 70% lower than the 3,829 available units counted a year earlier.

A graph in the report, which runs from early 2008 to January 2021, places this dip in historical perspective. The yellow line corresponds to active ads, while the blue line shows closed sales in the respective months:

The 4,058 new announcements for March jumped more than 31% from February’s count, showing that many sellers were eager to join in the excitement. But demand has definitely exceeded supply. At the end of the month, pending sales reached 4,064, six more than the number of new listings, and 3,272 deals had already been closed.

Meanwhile, the average price of $ 674,990 surpassed the then-high point of $ 632,481 for February by $ 42,509; the average in March 2020 was $ 565,745. Meanwhile, the median closing price hit $ 560,000, exactly $ 30,000 higher than the month before. And the average closing cost was 104.12% of the listed price, proof that the initial tag should be seen as just a starting point these days.

Nevertheless, the properties are snapping up at a dizzying pace. The average number of days that a detached home for sale appeared in the region’s Multiple Listing Service, or MLS, was only a fortnight in March, compared to nineteen in February and 29 in March 2020.

Why aren’t more people waiting for the market to calm down? Andrew Abrams, chairman of DMAR’s Market Trends Committee, has a simple answer: “Theoretically, this month’s report shows that if a buyer only waited a month to buy a $ 500,000 property from late February to late March, he would have had to pay an additional $ 35,000 for this property.

Holy shit. Click to read the Denver Metro Association of Realtors April 2021 Market Trend Report.