According to last week’s Market Trends Report from the Denver Metro Association of Realtors (DMAR), the imbalance between supply and demand in the Mile High City has 2021 starting out with annual home price appreciation solidly into double digits.

Report highlights include:

·       The average price of a single-family home that closed in January in metro Denver rose 2.9% from December to a record $629,159.

·       Annual price appreciation is running a hot 18.7%. But that sharp increase reflects the growing dominance of more expensive homes in what is available to buy on the market.

·       The median price, or the point where half the homes sold for more and half for less, came in at $510,000 for single-family homes. That is up 1.3% on the month and 10.9% year over year. The last time metro Denver started a year with double-digit median price gains was January 2018.

·       Condos and townhomes had an average closing price of $397,792 and a median closing price of $339,000. The average price is up 2.5% and the median is up 2.7% on a monthly basis and 11.7% and 11.15% annually.

Andrew Abrams, chairman of the DMAR Market Trends Committee, said that as the shift to more space and low interest rates continues to drive demand, the months-end active inventory continues to sink to historic lows.

After reaching an all-time low at the end of December, the number of active listings dipped another 8.9% in January to 2,316. Closings fell 42% from December to 3,015 properties and they are down 10.3% over the year. Abrams noted that pending sales are holding up much better and are on par with year-ago levels.

Home prices are increasing in Denver, but mortgage rates are still exceptionally low. Is becoming a homeowner one of your 2021 goals? Give Metrowest a shout today – we’d love to help you start the process!