Single Family Homes in Denver Now Exceed $600K

What Does This Mean for Buyers and Sellers?

Denver Realtors really weren’t sure what to expect from a global pandemic. I myself had many questions about what the Real Estate Market would look like when this was all over … and a few predictions. While we are still in the thick of this pandemic, there are some things that surprised me this year … and some things that did not. Either way, we saw the average price of single family homes in Denver exceed 600,000 for the first time in Denver’s history. So what does this mean for those who are thinking about buying or selling? Let’s talk!

Have you read my August market stats post yet? If you have, you probably know that the Denver Real Estate market is not showing signs of slowing down. Pre-COVID, March saw over 4,500 homes sold. Nearly 8% more homes were sold in June than in March, and even more homes sold last month (roughly 6,500). In fact, June saw the highest number of pending contracts we’ve seen in a while.

There might be a few factors helping:

1. Polis permitted open houses to concur once again (buyers and sellers are resorting to virtual tours a bit less and are seeing their dream homes in person!)
2. For many months, buyers/sellers were waiting to jump into the market due to COVID. Once cases began dropping, these patient folks made their moves.
3. Summer tends to be a hottest time for the Real Estate Market as-is, but this year all bets are off. Many Buyers are opting to escalate their plans of moving into a larger home because of the interest rates.
4. Interest rates are hovering below 3%, which is amazing when you think my parents bought their home with 12% interest!
5. Low inventory woes are bringing the average price up, up, up. Many sellers are nervous about having people come through their homes during COVID, or are opting to stay put and remodel. Additionally, refinance rates have soared through the roof … yes, I’m guilty here too. I’ve refinanced twice in the last 8 months but heck when you can drop your rate by an entire point, that’s huge savings.

While it was clear that prices in the Denver Market were going up, Realtors were still surprised to see this jump in average price. So why this increase in price? Let’s talk low inventory.

There is very little inventory on the market right now (down roughly 31% year-over-year). However, demand is increasing. The combination of low inventory and increased demand might be to blame for the increased average price. Maybe COVID had more of an impact on the Denver Market than we originally thought!

In addition, people were spending less money during the height of the pandemic meaning buyers had more cash on hand for a down payment.

Navigating Denver’s Market right now can be tricky. Let me help you make this process smooth and easy! Contact me for more information and be sure to check out my August Market Stats post here.