Denver real estate prices are climbing — again!
You read the headline correctly. The average Denver home price has officially hit $674,000, according to a new report from the Denver Metro Association of Realtors (DMAR).
This latest analysis provided data from March 2021, showing a $40,000 increase in detached home prices in Denver from February 2021.
A $40,000 month-over-month increase? That’s right.
It’s pretty incredible stuff.
In this article, we’re taking you through what this means for you as both a buyer and a seller.
You should also check out this article, which gives average sold prices for Denver homes in each specific neighborhood.
But for now, let’s focus on what the current real estate market in Denver means for you!
Denver Real Estate As a Buyer
The Denver real estate market is one of the hottest in the nation — creating a frenzy for buyers to find a place to call their own.
According to DMAR, buyers are being prompted to make “emotional decisions to rise above the competition.” The statistics in the report justify just how much competition there is among buyers, and just how far they’re willing to go to secure a home.
Typically, the Denver real estate market is highly seasonal — with winter months seeing a significant slow-down.
But this year (2021), winter home buying was red-hot.
One explanation could certainly be the pandemic. Out-of-staters from cities like New York and Los Angeles are fleeing to Denver for its wealth of outdoors activities and high quality of living. And they’re bringing big money along with them.
If you’ve lived in Denver for some time now, can you really blame them for wanting to join the culture of the Mile High City?
Still, for locals — it can be a little bit frustrating.
Unless, of course, you’re a seller.
Denver Real Estate as a Seller
DMAR currently describes the Denver real estate scenario as an “unwavering seller’s market.”
Much of this reasoning comes from low inventory of detached homes for sale.
Active listings at the end of March 2021 stood at 1,122.
By comparison, there were 3,829 homes available at the end of March 2020.
And believe it or not, there were 4,058 new listings in March 2021. Still, demand far outstripped supply, with pending sales hitting 4,064 and 3,272 deals already being closed.
All of this is taking place at record prices.
In March 2020, the average home price in Denver was $565,745. And as we mentioned at the top of the article, March 2021’s average home price was $674,000 — breaking the previously-set record of $632,481 in February 2021.
When selling a home in Denver, it’s basically an auction setting.
Average closing costs constituted more than 104% of listing price — proving that initial tags are more of a starting point than anything.
Why Don’t People Wait Until The Denver Market Slows Down?
That’s a tough question to answer.
Theoretically, it’s because prices continue to increase month-over-month with no real indication of slowing down.
For every month that a buyer waits, they can expect to pay $35,000 more for that same property than the month prior.
The real question is: Are you willing to get in on the action?
If so, it’s time to contact Park Hill Pro for a clear and simple experience — whether you’re a buyer or a seller.
We’ll help you buy your dream home or sell in the hottest market we’ve ever seen in Denver — reach out to us today!