Historic low inventory continues to push Denver metro home prices up

Although the number of homes for sale at the end of March increased 19.5% from February and doubled the number of homes available a year ago, at 4,516 active listings, that number is about 67% below the historical average number of listings for the month, according to the March report from the Denver Metro Association of Realtors.

The continued limited supply pushed prices up again in the 11-county Denver metro. At $620,000, the median sale price for a single-family home increased by 3.3% in March over February, although prices remained about 6.1% below March 2020.

“At the start of the year, gloomy predictions for the real estate market were broadcast far and wide,” says Michelle Schwinghammer with RE/MAX Alliance, a DMAR Market Trends Committee member. “Everyone was waiting to see what would come in spring. The latest numbers are in and confirm, perhaps to the surprise of many, that the luxury market in the Denver metro area is alive and well.”

Sellers received about 100 percent of their asking price across most housing categories last month. Buyers participated in more bidding wars, particularly for turnkey homes new to the market, says Libby Levinson-Katz, chairperson of the DMAR Market Trends Committee.

“Buyers may not have as many homes to view, but they do have the option of balancing the pros and cons of jumping into a competitive situation,” Levinson-Katz says.

Fewer days on market

Homes also sold faster, with the median days on the market dropping to 10 in March from 25 in February.

“The market is very competitive currently and has been tough for buyers to navigate,” says Olivia Merrill, with The Agency Denver, who recently helped a couple successfully negotiate the winning deal in a multiple-offer competition for their dream home.

“Sometimes, the seller will prefer the loan over cash if you get creative and structure the contract in an appealing way. We just closed on their forever home in a dream location and did so in less than two weeks, thanks to working with a trusted lender partner of mine. Who you work with matters.”

Luxury market remains strong

The luxury market remains a seller’s market with less than three months of inventory available, according to the DMAR report.

“For the luxury market, $2M+ in Denver, Greenwood Village, Cherry Hills Village/Englewood — inventory is still tight,” says Maritt Bird with The Agency Denver.

“The good news for buyers is that the close price to the original list price has dropped from an average of 105% this time last year to 96%, so even though there’s still competition and multiple offers, there might be room to negotiate on some properties.”

The top sale for March was a $7.3 million home in Cherry Hills Village that sold after being on the market for 25 days.

The news and editorial staffs of The Denver Post had no role in this post’s preparation.

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