Denver Real Estate Market Review
October 2021
The weather is getting colder, and it seems the frost is touching the housing market too. I say this with a little trepidation. As we have come to expect from the real estate market since the beginning of 2020, it’s hard to predict what is coming based on what has been. What I can say as of now: it’s still very competitive for buyers, housing prices continue to rise at a steady pace, options are limited, and sellers are starting to see competition as well. There are other indicators that the market is leveling off to a seemingly new normal, especially in the Denver Metro Area. Attached dwellings are starting to rise, almost on par with detached dwellings. The rate at which homes are selling is slowing down, ever so slightly. Interest rates remain low with a threat of rising. And with this normal, it’s clear that now is still the time to buy, even with all the competition out there.
Overall, the Denver Metro Area single-family housing prices have leveled off over the past two months. The average home in the greater metropolitan area is just around $688,000 currently, Which is a 15% increase over last year’s prices. This margin of increase is slowly closing as we move toward the end of the year, and over the past two months average home sales prices have been nearly stagnant. This is not the case for attached dwellings, as mentioned above. These prices continue to rise, as competition shifts from single-family detached homes to whatever is available in a given price range. All real estate is basically selling by the 5th day on the market. Talk about selling like hot-cakes! That definitely has not changed over the past 18 months.
Boulder is still a different animal, as it always has been. Housing prices in Boulder hit an all time high at the beginning of this year, and dropped as we went into the summer. We’re seeing an almost 8% increase in average sales price over last month (20% over last year), bringing the average just over $834,000. This is still quite a bit lower than the peak prices from April and May. This could just mean that the Luxury Market in Boulder is not moving like it did earlier this year. Condos and Townhouses are rising even faster in Boulder County: rising at 17% over last month ($544,000 average sales price). Properties in Boulder County aren’t moving as fast as the rest of the Denver Metro Area, averaging over 12 days on MLS before going under contract. This is entirely due to the price and availability.
The average sales price of homes in Longmont reached $530,000 again, up 17% over last year. This average sales price, much like Boulder County at large, is lower than the peak price in May. Longmont continues to be a very competitive market, but properties in town are starting to stay on the market longer. This could be in large part due to the sale-to-list price rate, which is currently at 101.3%. In other words, buyers are offering more than the list price and sellers are waiting for these offers. Still, properties in Longmont are selling 16% faster than last year.
As we keep an eye on the Real Estate Market coming to the end of the year, we’re paying close attention to the competitiveness and pricing for both buyers and sellers. If you’re in the market, either to buy or sell, get in touch with The Wise Team today. We’re here to help get the most out of your time – whether that be a brand new home in the Longmont Area, or selling property to move on. Give us a call when you’re ready!
