Photo by Cassidy Ritter Real estate
For the second month in a row, attached properties were sold at record prices. The average price of a single family home also hit a new high of $ 632,581.
March 5, 2021
So far, 2021 doesn’t look much different than 2020 – and we’re not just talking about COVID-19 restrictions. The Denver housing market, scorching hot last year, shows no signs of slowing. Buyers are abundant, homes are selling fast, and prices keep rising.
3,641 apartments were sold last month, almost four percent more than in the previous year. However, the month ended with only 2,024 active offers – a 58 percent decrease from last year, according to the Denver Metro Association of Realtor’s Market Trends Report. Buyer demand significantly exceeds supply, says Andrew Abrams, chairman of DMAR’s Market Trends Committee. “That’s why we see so many offers in every house,” he says.
Extension properties also became increasingly popular in February with 1,242 properties sold, an increase of 16 percent compared to the previous year. Single-family homes, on the other hand, recorded a drop in sales of almost two percent from 2,443 in the previous year to 2,399 in the previous month. “When people wanted more space, there was this sprawl to the suburbs. But now that the economy is opening up a bit, I think the slow demand is back on its way [the attached] Market, ”says Abrams.
Buyer demand is also causing prices for both single-family homes and extensions to rise. February was another record month, with single-family homes selling for an average of $ 632,581 – up 23 percent year-over-year, beating the previous record of $ 626,159 in January. And adjacent properties, such as condos and townhouses, sold for an average of $ 401,552, which was above $ 400,000 for the first time. (The previous record for affiliated properties was set at $ 397,792 in January.)
Houses come on the market, but they sell quickly. Last month there were 4,507 new entries, seven percent more than in January and almost 12 percent less than last year. According to the report, homes are on the market for an average of 23 days, compared to 39 days in February 2020. “Homes are coming and going faster than you can sell chips at a food fair,” said Nicole Rueth, a DMAR member of the Market Trends Committee .
The average list price of all residential properties is also still above expectations. Abrams says he wrote two offers in February for $ 101,000 and $ 90,000 above the asking price, but still got neither home. According to other brokers, this is not uncommon. “The name of the game is persistence because it’s very competitive,” says Abrams. “It is very uncomfortable to be pushed further [to a higher price point] than you think Everyone regards list prices as an anchor idea and many of these houses don’t really end up there. “
Most luxury homes priced above $ 1 million will also sell for more than list price, according to the report. More than 230 luxury properties were sold in February, an increase of 48 percent over the previous year. In February, more new entries also rose by almost 25 percent compared to January. It’s still a sellers’ market, but buyers can take more time to look at luxury properties. The average day on the market also fell from 71 days in the previous year to 63 days, according to the report.
“There are a lot of houses being put on the market, but you have to be very aggressive about getting them,” Abrams says. “I think it makes people feel very uncomfortable. So part of the process is just getting used to feeling uncomfortable. “