MARKET TRENDS
Median price of a single-family home in Colorado tops $500,000 for first time
INVENTORY OF ACTIVE LISTINGS STATEWIDE - APR 2021 16,583
6,244
5,676 2,076
-65.8%
-66.8% APR 2021
APR 2020
SINGLE FAMILY
APR 2021
APR 2021
TOWNHOUSE/CONDO
Above asking price trend reaches new highs as insatiable homebuyer appetite continues and sellers ask, “what’s a buyer willing to pay?”
area, the percent of list price received came in just shy of 105% for single-family homes and 102.6%for condo/townhomes. Statewide, the numbers showed 103.6% for single-family and 102.1% for condo/townhomes. “Officially, sales price/list price comes in at 104%, but REALTORS® will explain their experience is closer to 10% over list price in the moderate price ranges,” said Boulder/Broomfield area REALTOR®, Kelly Moye.
Despite the first month-over-month increase in the inventory of active listings in nearly a year, an insatiable homebuyer appetite quickly offset those gains with increases in the number of properties under contract and closed in April, according to the latest data from the Colorado Association of REALTORS® (CAR).
For some, this furious market is raising questions about a bubble and the potential for a painful crash. Last week, Google reported that the search “When is the housing market going to crash?” had spiked 2,450% in the past month. The answer we’re seeing from economists: There’s no comparison. “Many industry experts believe there is no bubble; instead, the demand for housing in the west, particularly in resort areas, is higher than ever due to the migration of people leaving big cities,” said Durango-Area REALTOR® Jarrod Nixon.
Market conditions continue to drive pricing for all property types in the Denver-metro area and across the state to new record highs with the median price of a single-family home in Colorado topping $500,000 for the first time, a price point that has doubled in just over 7 years. Whether you’re looking in the Denver-metro area or any other market across the state, the median condo/townhome price has risen approximately 20% year-over-year to a record $380,000, while the Denverarea single-family home hit a median price record of $562,250 in April.
The struggle for prospective homebuyers doesn’t end with inventory as rising prices continue to negatively impact affordability. The CAR Housing Affordability Index, a measure of how affordable a region’s housing is for consumers based on interest rates, median sales price and median income by county, is down between 15-18% for all property types statewide from a year ago.
“In April, the average freestanding home in Denver sold for its highest percentage above asking price than ever before. The last three months, in fact, have broken records month-overmonth with the average home in April selling for 105.5% of asking price,” said Denver-Area REALTOR® Matthew Leprino. The above-asking price trend, prevalent across the state in recent months, continued through April with record highs also set across all property types and markets. In the Denver-metro
REALTORS® continue to look at the market and wonder is there a break? Will we ever see a slowdown? Will affordable housing be something we see again? “Builders cannot break ground fast enough, so no reprieve there. Interest rates remain low, so that continues to push prices and buying. For the short term, there is no calm in site.
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