The Denver real estate market has been sizzling hot since 2020, raising concerns over a potentially looming house bubble in 2021. According to the April report released by the Denver Metro Association of Realtors (DMAR), this property market had at least 5,000 home closed sales – accounting for a year-over-year increase of about 28%. With only two weeks of home stock remaining, property prices soared to record-breaking levels despite the overall stagger in annual price appreciation turnover. The year-to-year home price appreciation pace recorded in April revolved around 24%.
Home Prices and Closed Sales Trends
Standard single-family detached properties throughout Denver had an average price of $699,039 last April. Their median price of $585,000 during this period. Besides being historical, these prices also accounted for a yearly turnover rate of about 23%.
The year-over-year closed sales record for detached single-family properties increased by 2.9%, while that for the attached units decreased by 14% relative to March records. Keeping in mind that it was until February that attached homes throughout Denver started to record an average price of more than $400,000 – April’s figure settled at $444,252.
The annual median price turnover for attached single-family units in Denver throughout April was $376,360 – marking an increase of more than 16% from April 2020.
Considering that buyer interest is still at its peak, the Denver housing market still stands as a strong seller’s market for detached and attached property segments. Buyers are increasingly desperate and are willing to pay more to get the house of their dream in Denver.
According to the DMAR report, the closed-price to list-price ratio increased to more than 104% in April. Median prices for all residential units within the county increased by $86,000, accounting for an annual appreciation pace of more than 19%.
Month-over-month appreciation rates for the detached property market climbed to 4.28%, while that for attached units settled at 7.30%.
Crucial Market Insights
Competition seems skewed towards property owners and is still at an all-time high for nearly all price segments throughout Denver. This trend adds more pressure to buyer’s interest, forcing inventories to move faster than we saw last year.
The average stay period for properties was 13 days in April, making it five days faster than a year ago and six days quicker than the previous month. Sellers still can’t match buyer’s interests, meaning that inventories might continue being tight for most parts of the second half.
With more people now getting their COVID-19 vaccine jabs, realtors are hopeful that listings might start to increase later in summer. The number of fully vaccinated residents in Colorado is approximately 47.4% (at the time of writing this). In mid-spring, new listings for the detached units rose by 14%, with only 4662 new additions despite the steep 73.69% yearly turnover in pending sales.
It’s exceedingly difficult to find a decent home within Denver, and the growing demand is now stripping out inventories throughout Colorado. The Colorado real estate market is similarly a seller’s market – characterized by very high property prices primarily fueled by the historically low interest rates.
According to the latest Colorado Association of Realtors (CAR) report, the median price for single-family homes throughout the state of Colorado topped $500,000 for the first time in April. The report further outlines that closed home sales for similar units rose by 34.9%, while the median property sales price throughout the state climbed to 19.5%.
Overall statewide inventory dropped by 69% and leveled off at about 0.7 months of supply.
The continued downward trend on new supplies might lead to more record-breaking home prices before the end of the year. Housing markets within Denver and its surroundings will continue being hot seller’s markets for all price points, including both attached and detached property segments for the rest of this quarter. The only foreseeable exception at the moment includes attached units priced beyond $1 million. Despite how tough this local housing market might seem, the Woodruff Real Estate and Property Management Company are here to help.We understand the frustrations experienced in the current Denver real estate market, and we take pride in providing you with both value and convenience. Reach out to our qualified team by calling (720) 724-9794 or email your query to firstname.lastname@example.org.