Denver’s housing inventory continues to be strained reporting record-low available properties. But with the warmer weather on the rise and the pandemic fading into the background, homebuyers are coming back into the foray now that things are looking up. According to the Denver Metro Association of Realtors, recent metrics have shown that Denver’s median home prices have achieved new heights.
The median closing price for single-family homes in Denver racked up a total of $575,000 during the month of February. For comparisons, this time last year the average Denver home was costing around $475,000. That is a large $100,000 increase in home costs from last year! More specifically, Single-unit family homes are currently closing at a median price of $635,000, and attached units are selling at a median price of $405,000.
Denver’s Median Home Prices on the rise again
The classic supply and demand factors are driving Denver’s median home prices. It seems that with the pandemic falling to the wayside, all sorts of markets are opening. This includes the housing market but the number of homeowners looking to sell their homes is in short supply. At the end of the month, there were only 853 detached units available — down 23.84% from this time last year. Things are even more competitive for people looking for attached residences. There were only 373 available at the end of the month, down 58.75 percent from this time last year. It also follows that actual closing on homes was down compared to last year as well, 19.32% down with only 3,201 homes closing in last month.
In a Denverite article Andrew Abrams, head of DMAR’s Market Trends Committee is quoted that bids go for $250,000 over the asking price, though he also saw a house close at $10,000 under the asking price. Typically, the better the condition, the higher the offer.
“With the continued demand and lack of inventory,” he said, “prices will increase and lead to another year of double-digit appreciation.”
Homeowners Choose to Build Rather Than Sell
A large number of homeowners are hesitant to join in on the hunt for relocating in Denver, and with the recent demand in the market, others are looking to increase their home values even more. Denver’s median home prices also mean increased home equity, which many are using to tap into for increasing the value of their home even more for the future. Popular residential construction projects like pop-top additions, garage ADUs, and home additions have been all the buzz around Denver. Homes after weathering the pandemic possibly felt a little cramped and the return of flex spaces seemed to be the answer. Families needed extra room to live out their daily lives with a dedicated space that wasn’t the kitchen countertop. Another need was bringing the family closer to home, creating a new bedroom, or remodeling a basement has been a suitable solution.
All of these residential construction projects have a good purpose behind them and at the same time secure a profitable future for those looking to sell. But with the current landscape being strained by lack of inventory and the push for self-improvement Denver can expect to see home costs rising more throughout the year.
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