The Denver housing market is showing few signs of slowing down as prices continue to increase. Former Denver residents find their plans to move home restricted because they are priced out of the market. Buyers are reconsidering their plans to build due to increasing interest rates, and are nervous to commit without knowing what their payments will be. The average cost for a detached single-family home passed the half-million mark, settling at $502,986. This is the first time in Denver’s history.
The number of active inventory for single family homes plus condo was 4,084 for February. This is a 5.56% increase from January and a 5.31% increase year-over-year. The average sold price for February is $453,258, a 1.52% increase from the prior month. This is a 12.53% increase from the previous year.
The number of active inventory for detached single family homes was 3,015 for February, which is a 6.76% increase from January. This is a 3.32% increase year-over-year. The average sold price for a detached single family home is $502,986. This is a 2.48% increase from January and an 11.78% increase from the previous year.
February saw an active inventory of 1069 condos (attached single family), with a 2.30% increase from the prior month. This is an 11.35% increase year-over-year. The average sold price for attached single family homes is $345,632, which is less than the previous month by -0.25%. However, this is a 16.95% increase from the previous year.
Denver home buyers need an average annual salary of $79.180.65 in order to afford a median priced home. For attached single family homes, high HOA fees can be factor for buyers. Similarly, renters need an average hourly wage of $21.97 an hour to afford rent Colorado. The average renter’s salary is $17.13.
Denver is building a plethora of apartment buildings in 2018, and apartment owners are looking at conversion options, allowing them to sell their apartment units as condos. The housing supply shortage is is causing buyers to turn to new builds; a new build takes an average of 7.5 months to complete, which will not satisfy the demand.
We would love to help you with the buying or selling process! We know it can be intimidating, especially with Denver’s current housing market, but we know we can help you enter that new, exciting stage of your life. Get in touch with us via our contact form and let us help you start the next chapter!
Note: All data has been sourced from the March Denver Metro Real Estate Market Trends Report compiled by the Denver Metro Association of Realtors and includes 11 counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park.