Denver Metro Real Estate Market Review
Hello May! With the warmer weather, vaccinations, and general confidence in 2021 it looks like homes are coming back to the market for sale. They’re still flying like hot cakes! 20 days on MLS on average, with a median of 4 days — we haven’t seen sales like this in years. This trend that’s been sustained in Denver since 2020 has swept the nation over the last few months, driving national average home prices up 20% over last year just as sellers re-enter the market. What does this mean for buyers: You have to be ready, move fast, and don’t come in under the asking price. Let’s take a look at the markets so far.
The Denver Metro Area real estate market is still a seller’s market, which will probably remain through the rest of the year. Houses are selling as fast as they come on the market, keeping month end inventory low. Sales volume continues to grow despite fewer sales. Housing prices have risen 17.52% over last year, bringing the average close price in the front range to just over $582,000. Closing prices coming into May were almost 3% higher than asking price on average. All of these statistics are indicators of the seller’s market dominating 2021!
Boulder County, as always, takes the lead with these trends. Housing prices are skyrocketing with the help of the reinvigoration of the luxury market. As we rolled into May the average closing price of a house in Boulder rose 29% over last year to $888,809. With these higher prices homes do tend to sit on the market longer, but this year Boulder is keeping pace with the greater Denver Metro Area with an average of 24 days. For most of the last year Condominiums and Townhouses were lagging in growth compared to single-family detached homes. That is not the case anymore! Sales have not only picked up in April, coming into May, but the percent of list price received skyrocketed to 104%, catching up with the rest of the market. Even with high home values in Boulder and the Foothills, it’s a seller’s market in Boulder County!
As the market goes, so goes Longmont. Closing prices are keeping pace with Boulder, and we’re seeing the revitalization of condo and townhome sales as well. Up nearly 25% over last year, the average sales price of a single-family, detached home was $612,544 as we kicked off May. Condos and Townhomes rose almost 17%, bringing the average sales price to $394,348. Even though inventory is moving, real estate in Longmont is still staying on the market a good deal longer than the rest of the Metro Area, 36 days on average.
What does all this mean? We’ve said it already, but we’ll say it again: when you’re ready to buy, act fast and don’t bid low. Searching in areas where homes sit on the market for a little longer you may have some wiggle room to negotiate the price, but across the board homes are simply selling, and selling higher than the ask price. If you’re a seller sitting on a property you’ve been worried about getting sold, this is the time to put it on the market. We are starting to see a rise in new housing permits, after several years of a lull and focus on higher density buildings in the front range. This may help housing prices stabilize toward the end of the year, but for the foreseeable future this Seller’s Market is moving forward with intensity!
Don’t let that discourage you! We can still find you a new home in your budget! Get in touch with The Wise Team today for help navigating this fast-paced, high demand market.