Property prices in the greater Denver area are getting higher and higher.
July 07, 2021, 11:56 am
The average closing price for a home in the Denver metropolitan area hit a record $ 545,000 in June, according to the latest Denver Metro Association of Realtors real estate market trend report released this week. The amount is 1.49 percent more than in May and a whopping 22.47 percent compared to June 2020.
The report uses sales from 11 counties in the metropolitan area, including Adams, Arapahoe, Boulder, Broomfield, Denver, and Jefferson counties.
Realtor Brigette Modglin, who has been part of the Association of Realtors’ market trends committee since 2016, said some of the reasons behind the increase are more millennials looking to buy homes, shoppers looking to work from home after the pandemic and Baby boomers, who are also prospective buyers, either by enlarging or reducing their current homes.
She added that there were some huge sales which may have skewed the numbers a bit. A home in posh Cherry Hills Village, south of Denver, recently sold for $ 1.1 million above its original list price. While Modglins is helping, it wasn’t clear if that sale affected the June number, but she said it was the type of sale that could cause sales averages to rise. She noted that this is why the median closing price is generally used more often than the average closing price, as Modglin said the average is the sum of all home sale prices divided by the total number of sales. The median is closer to the “middle” and is better isolated from outliers such as a multi-million dollar home sale. The report said the average closing price for a home in the metropolitan area was $ 643,645 in June.
The report found that the average number of homes in the market for June is 16,098, based on numbers from 1985 to 2020. With just 3,122 offers last month, the market is nowhere near as far, a record low. Although it was a record low, June numbers were up 50.46 percent from May, well above the average change of 5.86 percent. But even then, the 3,122 listings were 51.09 percent less than in June 2020.
The record high in June was 2006, when the area recorded 31,900 entries, according to the report.
Correction: In a previous version, Modglin’s last name was misspelled.