Market Moving Faster than Ever as Prices Continue to Rise
Homes are selling on average 8 days faster than this time last year and the February median sale price of all homes was $575,000, up 21.05% from last year. Buyers have almost 40 percent fewer homes to choose from, compared to last year, with only 1,226 active homes for sale at the end of February.
Fortunately, Denver metro’s active listings available at the end of the month increased by 3.55% over last month. The average price of a single-family detached home is currently $739,950 an increase of $107,369 from the same period a year ago.
So what does this mean for Denver metro homebuyers?
- If you are jumping into the market, you need to be ready to think and act quickly!
- You’ll need to see homes the day they hit the market and submit strong offers with determination and decisiveness
- Prices are only going up as demand is beyond hyperactive and supply is 12 percent down from last year
- According to Megan Aller with First American Title, we typically see the highest number of homes go under contract from March through July so we should see inventory pick up this month through the summer
- Being able to stay positive comes down to the expectations you have from the get-go. Knowing the market data before you launch into the process can help you with expectations of timelines, tactics, and probabilities
- Your Usaj Realty broker will help walk you through your exact home criteria and set you up for success as you begin your home buying journey
If you are a home seller, consider selling sooner rather than later:
- We are in an incredibly strong sellers’ market, with only a 0.4 months supply of inventory for single-family homes and 0.35 for condos. A 6 month supply is considered a balanced market
- Your Usaj Realty brokercan help you figure out the supply of inventory in your price range and neighborhood and this will impact your odds of selling
- Anything less than a 1 month of supply suggests you should have multiple offers
- Our region’s current list-to-sell ratio is 104.75%, meaning that the average home sold for over the asking price!
- On average, homes are getting 24 showings in the first weekend (First American Title)
- With 30-year mortgage rates topping 4% in February, a full percentage point above where rates were this time last year, more buyers are finding themselves priced out of the market
Key Quotes from DMAR:
- The amount of homes hitting the market is down 12 percent when comparing YTD numbers from this time last year, 8,761 properties hit the market in January and February of 2021, and in 2022 we’ve only seen 7,671
- “The lack of supply coupled with the surplus of buyers has caused prices to rise quickly, leading to an unprecedented close-price-to-list-price ratio of 104.75 percent.”
A Quick Glance at the Numbers:
|Avg. Days on Market||Avg. Sold Price: Single Family Home||Avg. Sold Price: Condo||# of Homes Active||# of Homes Sold||# of Homes Pending||Avg. Sold Price Change YOY|
|Feb. 2017||43||$447,838||$297,610||3,878||2,805||4,350||+ 7.8 %|
|Feb. 2018||50||$502,986||$345,632||4,084||2,927||4,399||+ 12.53 %|
|Feb. 2019||39||$512,312||$349,801||6,017||3,054||4,635||+ 0.66 %|
|Feb. 2020||39||$544,054||$368,936||4,835||3,429||3,080||+ 5.04 %|
|Feb. 2021||23||$632,581||$401,552||2,024||3,641||3,186||+ 19.44 %|
|Feb. 2022||15||$739,950||$461,778||1,226||3,202||4,161||+ 16.99 %|
- “Russia’s invasion of Ukraine could complicate the interest rate picture, contributing to lower rates in the near term as people seek safe assets like U.S. Treasuries, but higher rates in the long term as more inflationary pressures are unleashed, especially in areas like food and energy.”- The Denver Post
- “The city and county of Denver is short more than 50,000 homes for people making 60% of the area median income or less, according to Denver Housing Authority executive director David Nisivoccia.” – Denverite
- “Over the past year, one-bedroom apartments jumped 20.7%, to $1,690, and two-bedrooms jumped 13.50%, to $2,180.” – Denverite
- “Financial markets worldwide likely will feel the impact from the Russian invasion of Ukraine, the largest military operation in Europe since World War II. Economists are warning that the U.S. housing market should brace for some possible changes in consumer behavior.” – Realtor magazine
- “Buyers in metro Denver scrambled to grab a property last month before rising mortgage rates put a purchase out of reach, setting the stage for what could become another year of double-digit home price gains.” – The Denver Post
Average Interest Rates by Year in Denver
|Average Interest Rate||5 %||4.7 %||4.4 %||3.6 %||4 %||4.2 %||3.8 %||3.7 %||4 %||4.6 %||3.9 %||3.1 %|
Data courtesy of Megan Aller | First American Title
The number of active homes available in Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties from August 2017 – February 2022 Source: DMAR | Graph by Usaj Realty
During these unprecedented times, Usaj Realty would love to carefully assist you with finding your next place to call home, or selling your current property. Our acumen, attention to the market, and negotiation skills will all go to work in order to advocate for your goals. Email us at info(at)usajrealty(dotted)com or call 720.398.2999 (m). We measure our success by the happiness of our clients!