According to the S&P CoreLogic Case-Shiller home price index, metro Denver broke a 20-year-old record for annual home price appreciation in April, and it only took a month to break that new record.

Denver’s home price index rose 16.2% year-over-year in May, surpassing April’s record 15.5% gain. The national index’s 16.6% annual gain in May also represented a new record and surpassed April’s 14.8% gain.

Charlotte, Cleveland, Dallas, Denver, and Seattle all experienced record 12-month gains for home price appreciation in May.

But that doesn’t mean the pace of appreciation in Denver and across the country will continue indefinitely.

Improvements in the availability of new listings will help release the tremendous pressure that competing buyers have put on home prices and home price growth, which industry professionals predict is likely to slow by the end of the summer.

The bad news for frustrated buyers is that resigning the lease is becoming a less palatable option as rent inflation returns with a vengeance following a stretch of flat or falling rents in many areas during the pandemic last year.

Apartment rents in July rose 11.6% statewide year-over-year, with Denver rents up 8.8%, Parker up 17.3%, Thornton up 16%, and Littleton up 15.4%, according to a monthly survey from Apartment List.

Median apartment rents shot up 3.1% between June and July in Denver, while nationally they rose 2.5% on the month, the survey found.

If you’re looking to go from renter to homeowner in 2021, now could be a great time to start looking. Bidding wars are declining in the metro area as more inventory becomes available, and while it’s still considered a seller’s market, there are some great deals to be found if you know where to look. Give Metrowest a shout today and let’s discuss your options!