Photo by Cassidy RitterProperty
The records don’t stop with single-family homes. The average price of the affiliated properties exceeded $ 395,000 for the first time.
February 5, 2021
We may have started a new calendar year, but the Denver real estate market hasn’t changed – prices are still high and inventory levels are low. And unsurprisingly, January was another record month in several categories.
In January, single-family homes in the greater Denver area sold for a record $ 626,159, up 18.7 percent year over year. The previous record was set in October with homes averaging $ 625,100. According to the Denver Metro Association of Realtor’s Market Trends Report, the average price of affiliated properties – condos and townhouses – also rose to $ 397,792, topping $ 395,000 for the first time.
“Denver’s housing market is strong; We know that. Historically, Denver has seen home values grow six percent each year and fluctuate in a seller’s market. This season, however, the real estate market continues to encounter extremes, ”says Nicole Rueth, member of the DMAR Market Trends Committee.
Andrew Abrams, Chairman of DMAR’s Market Trends Committee, expects a large increase in value this summer. It’s hard to predict after this summer, however, Abrams says.
“I think there will be a normalization at some point where we don’t see a double-digit appreciation,” he says. “We see so many offers for each house that instead of seven offers, if it drops to two, it would be a more normalized form of appreciation.”
The price increase is a question of supply and demand. The subway ended with 2,316 homes in the market in January, the second time Denver has had fewer than 3,000 active listings. The previous record low was reached in December 2020 with 2,541 active listings.
However, there were still apartments for sale. In January, more than 4,200 apartments were brought onto the market, 39 percent more than in December, but 13 percent fewer than in the previous year.
“The name of the game for the market was Speed,” says Abrams. “There were a lot of houses on the market, but you had to react very quickly, make a decision quickly, and be aggressive quickly to get a house.”
Even with low inventory, 3,015 homes were sold in the past month, and most properties were also sold above list. Abrams says the desire to sell houses is still not as great as the desire to buy. Most people are moving to change their lifestyle, but COVID-19 makes people worry about moving logistics, he says.
With low inventory levels across all price ranges, the metropolitan area continues to have a seller’s market, including luxury home prices starting at $ 1 million and above. Last month, there was 2.22 months of inventory for luxury single-family homes and 3.65 months of inventory for luxury add-ons. The median of the days in the luxury single-family home market was 44 days, according to the report, and a median of attached luxury homes remained in the market for 42 days.
“Luxury buyers were overjoyed in January because they may not have to compete as much as in other market segments,” says Brigette Modglin, member of the DMAR Market Trends Committee.