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Denver's Dynamic Real Estate Market

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Denver Market - March 2021 Trends Report 
Source:  Denver Metro Association of Realtors, April 5, 2021

One-year post COVID and this unwavering seller's market

makes it clear that buyers are left making emotional decisions

rather than factual ones when purchasing a home. 

In March, the Greater Denver Metro housing area displayed itself as an emotional market, with nearly every statistic in the report justifying how much competition there is for buyers as well as how far they are willing to take their offers to secure a home. 

 

Year-over-year appreciation is at 15.26 percent from $511,511 to $589,587 this March, while month-over-month appreciation is at 6.90 percent from $551,542. On par with recent months, median days in the MLS went down to four, while close-price-to-list-price ratio went up to 103.32 percent. Whether looking at detached or attached properties, it is a strong seller's market across the board.

Theoretically, the DMAR report shows that if a buyer waited just one month to buy a $500,000 property from the end of February to the end of March, they would have had to pay $35,000 more for that property.

Denver Market - February 2021 Trends Report 
Source:  Denver Metro Association of Realtors, March 3, 2021

The underlying 2021 theme of this seller’s market is that buyer demand continues to stay hot, even as many buyers continue to be iced out in this fast-paced market.

In February, the Greater Denver Metro housing market proved that the underlying theme of this market is speed: speed at which buyers are purchasing relative to the number of sellers listing, and the speed at which active properties are going under contract while prices are accelerating. 

 

While many metrics still show detached properties are in higher demand than attached, that gap decreased in February. There were 3,641 closed properties, up 3.70 percent from last year at this time, and in part because attached properties were on the rise. Attached properties saw a 16.29 percent increase in closings relative to last year at this time.

 

The increased demand for attached properties propelled the market to an average close price of $401,552. This is the first time the attached market has had an average price above $400,000. Meanwhile, detached properties saw a 1.80 percent decrease in closed properties relative to last year.

Denver Market - January 2021 Trends Report 
Source:  Denver Metro Association of Realtors, February 3, 2021

Inventory drops to historic lows at the average price of single-family detached and attached homes reaches record high.

In January, the Greater Denver Metro housing market again broke an all-time record, a new inventory inventory low with only 2,316 total properties on the market, translating into an inventory shortage and opportunity for appreciation to accelerate. 

Single-family detached properties hit a record average price of $629,159, while attached properties hit a record of $397,792. Single-family home sellers saw a 101.03 percent close-to-list price price in January and a drop to five days in the MLS, down from six last month and 24 days last year.

 

Overall, the drive in demand has been proportionally higher for single-family detached properties than attached properties, explaining why the market is currently sitting with historic low inventory for single-family detached properties. 

Linda Sease

Real Estate & Interior Design

303-319-5829

Linda@LindaSease.com