House hunters in Denver are undoubtedly feeling the heat. Not only from the 90+ degree July days, but also from the hot housing market here in the Mile High City, which continues to gain momentum.

Jeff Tucker, an economist with Zillow, notes that at least through this summer and fall, the rising list prices, rock-bottom inventory, and pent-up demand from missing transactions this spring will keep sale prices resilient here in Denver.

According to recent data from Zillow, home prices continue to rise year-over-year in 50 major metros, led by Indianapolis, up 11.8%, and Salt Lake City, up 9.8%, according to Zillow indices. Metro Denver home price gains, at 3.9%, have lost a bit of team and are running below the U.S. average of 4.6%.

It is important to keep in mind Denver is also a much more expensive market, with a May median sales price of $432,153 here versus a median sales price of $263,408 nationally, researchers said. So far, that higher valuation doesn’t appear to be leaving the market more exposed to softer prices.

According to Zillow, another sign of the heated market is the share of homes that received competitive bids. Back in June 2019, only 12.3% of metro Denver homes sold received multiple offers, according to brokerage firm Redfin. But in April and May of this year, 55.6% and 53% of homes sold had competing offers.

CoreLogic, which lists metro Denver among its overvalued markets, is predicting a 9% decline in home prices here a year out. Its reports also note that U.S. mortgage delinquencies, after 27 straight months of declines, spiked in April to their highest level since January 2016.

The long-term impacts of the Coronavirus pandemic on Denver’s real estate market have yet to be seen. While prices are staying high for the moment, it’s possible that with time, we may start seeing a shift toward a buyer’s market. If you are thinking of purchasing a home soon, Denver has a lot to offer. Give Metrowest a shout – we’d love to help you start the process!