Denver Home Prices Continue to Rise

The average price of a single-family home sold in the Denver area hasn’t hit $500,000 yet, but it’s about as close as it can get. The average price of a home sold in June hit a record $498,762, up 7.19% from a year earlier, according to the latest report from the Denver Metro Association of Realtors. The average price of a condo also hit a record at $333,800. And while one month does not make a trend, with a half years’ worth of data under our belt, 2017 is on target to set a record for sales volume. The metro area hit a record $11.86 billion in total home sales in the first half of the year, a 14.53% jump from the previous all-time high in 2016. In short, buyers have already paid $1.5 billion more for homes than they did in the first six months of last year.

For Sale Sign

Other notable metrics:

  • There were 7,059 active listings on the market at the end of June. The 3.87% year-over-year increase in listings is not as big of a jump in the supply as needed, but at least it is moving in the right direction.
  • At the half-way point of the year, 27,521 homes and condos have sold, a 5.81% improvement from last year.
  • There is a mere 5.6-weeks of inventory of single-family homes on the market, a 7% drop from inventory levels at the end of June of last year.
  • Denver, once again, was ranked No. 4 by Case-Shiller in its latest report. Denver booked an 8.2% appreciation rate in April, compared with 5.7% for the 20 big cities tracked by Case-Shiller. Only Seattle, Portland, and Dallas showed a bigger bump in home values than Denver.

The luxury market of homes priced at $1 million or more was especially strong in June. An analysis by Kentwood Real Estate, revealed that 172 single-family homes sold for at least $1 million, a record for June. Last month’s luxury home activity was up 25.5% from the 137 homes that traded hands in June 2016. The closed sales volume for luxury homes hit $258.985 million, also a record for June and 27.5% higher than in June 2016, Kentwood reports. In the first half of the year, a record 677 luxury single-family homes sold, Kentwood notes, a whopping 31.7% jump from 514 in the first half of last year. The closed dollar volume for luxury homes topped $1 billion for the first time in the first half of a year, a 30.7% jump from the $785.656 million sold in the first six months of last year.

With such a sizzling market, understandably you might think it is prudent to wait on the sidelines for the market to cool. While no one knows what’s in store for the Denver housing market, nothing indicates that demand will slow enough to make this a buyer’s market. A more likely scenario is that appreciation will slow a bit. But even a 5% uptick on a $500,000 home is still $25,000. So, if you are in the market to buy, contact a trusted real estate professional.

The longer you wait, the more you are likely to pay.

Tagged Under: Real Estate

Mara Calomino

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