Rapid Pace of Denver's Housing Market Continues to Heat Up
The low number of homes for sale shouldn't solely be attributed to a lack of homes coming on the market but instead to the speed of which homes are getting taken off the market by expedient buyers. 6,699 new homes hit the market in April and a whopping 5,941 of them were swooped up by buyers getting a contract accepted. This is hopeful news for Denver home buyers: there are definitely homes out there to buy, you just have to move extremely quickly and be incredibly decisive to land one.
According to DMAR, "Since last year, the market has seen a steady rise in competition and therefore prices have as well. With only two weeks of inventory, year-over-year appreciation continues to be both staggering for the market while also bringing home sellers inevitably great returns, increasing 24.20 percent in April."
A quick look at what happened in April:
- Denver metro had 2,015 more new homes hit the market in April 2021 than we did in April 2020!
- Denver metro's active listings available at the end of the month declined by 62.16% over last year
- Newly listed homes on the market increased by 43% from last year
- The April median sale price was $526,000, up 19.55% compared to last year
- The typical home spent 13 days on the market in April, 7 days less than the same time last year
- The average price of a single-family detached home is currently $699,039, an increase of more than $24,049 from March 2021 and $148,862 higher than the same period a year ago
If you are currently buying or deciding to buy and want to avoid a multiple offer situation, check out homes that have not sold after the first 2 weekends of being on the market. Your Realtor can set you up on automatic searches for these listings, and in the meantime, you can browse homes that have been on the market 30-60 days at the button below:
Quick Tips for Denver Home Buyers:
- With fierce competition, being available to view a house and make a quick decision is crucial right now.
- Historically, the market sees inventory reach its low point in February and March, followed by an increase in homes for sale until we hit our inventory peak in August and September.
- Search for homes that have been sitting on the market for 7 or more days. You will be much less likely to face a multiple offer situation and possibly even offer BELOW the asking price!
- Search for new construction homes to avoid a multiple offer situation.
- The market is moving FAST and one of your best tools to utilize is working with a great real estate agent. With a Usaj Realty broker guiding you throughout the process, you'll be set up for success!
April's Numbers Over the Years:
|Avg. Days on Market||
Avg. Sold Price: Single Family Home
|Avg. Sold Price: Condo||# of New Listings||# of Homes Sold||# of Homes Pending||
Avg. Sold Price Change YOY
+ 10.53 %
+ 11.38 %
+ 1.5 %
+ 1.52 %
+ 24.2 %
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 firstname.lastname@example.org or call 720.398.2999. We measure our success by the happiness of our clients!
Headlines: What's Happening in Colorado
County assessors increase home valuations 7 to 11 percent
"Home sale prices have increased sharply in the Denver area in recent months but homeowners will see a more tame increase when they receive their property valuation from the county in coming days. Among counties in the Denver area, Boulder County had the largest median valuation increase for residential properties, at 11 percent. Jefferson County was next at 10 percent, followed by Douglas and Adams counties at 8 percent."
It’s a seller’s market again for downtown condos
"It’s a seller’s market again for downtown condos. The pandemic homebuying boom initially bypassed condos. But inventory isn’t stacking up anymore and prices are rising."
Headlines: What's Happening Nationally
Housing market inventory is starting to recover
"Housing starts jumped in March, recovering from a bleak February that included wild winter storms in the South, according to a recent report from the Census Bureau. Single-family housing starts rose 15.3% over the month to a pace of 1.24 million annualized units. That’s up 37% from a year ago, but it’s important to take into account that the COVID-19 virus first took hold of the housing market in March 2020, said Doug Duncan, chief economist at Fannie Mae."
Remodeling expected to remain hot, even as the pandemic eases
High lumber costs add more than $35K to new home prices
"Rising softwood lumber prices over the last 12 months have added $35,872 to the price of an average new single-family home, and $12,966 to the market value of an average new multifamily home. The increase in the multifamily value translates to households paying $119 a month more to rent a new apartment."
Americans’ sky-high savings to make spring market even hotter
"Many American households are feeling richer, sitting on the nest egg they’ve built during the pandemic. Those savings may be released into the economy in new spending this spring and summer, which will bode well for the already surging housing market. Personal savings increased to a 21% annual rate in the first quarter of this year, reaching the second-highest level on record, according to the Bureau of Economic Analysis."
Report for April 2021:
Read Denver Metro Association of Realtor's full report on last month's Real Estate trends and statistics in Denver here.
And as always, please let us know if you have any questions!
Whether buying or selling, Usaj Realty is dedicated to helping you stay competitive. Your Usaj Realty broker will communicate effectively, learn your goals like the back of their hand, and work closely with you to negotiate the best terms possible, and expertly manage your transaction from start to finish, ensuring peace of mind.
Email us at email@example.com or call 720.398.2999.
Posted by Jennifer Black
Jennifer Black champions all of Usaj Realty’s marketing publications. With a passion for digital marketing, graphic design, writing, and all things creative, Jennifer excels in the office as a crucial support staff member for our brokers and management Originally from Redwood City, California, Jennifer pioneered her way to Denver and began working for Usaj Realty in May of 2014. She loves every minute of life in Denver, which is directly enhanced by her time designing for Usaj Realty. Away from work, Jennifer enjoys escaping to the great outdoors, going skiing, hiking, and exploring local breweries and restaurants.Facebook LinkedIn Twitter