Last year’s freeze on the pandemic makes year-to-year comparisons difficult when it comes to the Denver Metro real estate market, but some trends definitely stay in the game, and some new ones are gaining strength.
There are still not enough properties available in the face of demand, deals coming onto the market are being signed in lightning-fast, and prices continue to accelerate at an unimaginable pace a year ago, according to the Denver Metro Association of Realtors’ April Market Trend Report .
And in something rarely seen, luxury homes, defined as those over $ 1 million, are a hot commodity that is one-third selling and twice as fast as it has been in recent years.
“Since last year we have seen a steady increase in competition and thus prices. With only two weeks of inventory, prices continue to rise, ”said Andrew Abrams, Chair of the DMAR Market Trends Committee, in comments on the DMAR Market Trends Report for April.
Two weeks later, there were only 2,594 homes and condos for sale in late April, but 5,088 closings that month. The inventory of listings at the end of April is 35% up on March, five times the usual monthly percentage increase and a record for April.
Even so, inventories are down 62.2% from April 2020, and this is where comparisons get messy. Sellers, fearing that strangers might visit their homes during a pandemic, tugged at bids or held back to put their homes up for sale at the time. According to Abrams, new registrations this month were 43% below the number that had surfaced last month.
The pandemic gave single-family homes a marketing advantage over condominiums, and this trend continues even though the condominium market is warming. Single-family homes spent an average of 10 days in the market last month, while condos spent 21 days. The average trading days for single-family houses have fallen by 37.5% compared to March and the first six months. Condos saw listing times drop by nearly 20% last month, but are only down 8.7% from April last year when a big slowdown hit the market.
The scarce supply is driving prices up further. The median closing price of a home sold on Metro Denver last month hit a record $ 585,000, up 4.3% from March and 23.2% year over year. Condominium prices also picked up. The median retail price of $ 376,360 was up 7.3% from March and 16.9% year over year.
One trend that is driving home prices is for buyers to buy more luxury homes. For the first four months of 2018, 2019, and 2020, the number of over $ 1 million homes sold on Metro Denver ranged from 649 to 661, a narrow range. So far this year, buyers have closed 1,353 of the high-end properties in Metro Denver, according to the DMAR report.
Luxury real estate is off the shelf, which is rare. The median MLS days for a luxury home was seven last month, down from 23 in 2020 and even 48 days in 2017.
But that begs a question: whoever is grabbing all of those high-end homes and asking for another one – a market where the average retail price for a single family home is now a little under $ 700,000 has to redefine their definition of luxury home ?