If you’re a house hunter on a budget in Denver, you no doubt understand the affordability challenges many are facing. According to a recent study from Redfin, Denver's  metro area is just one of many where home prices continue to rise.

The report analyzed the conditions of the U.S. housing market in July 2021 compared with July 2020. To compile the report, Redfin looked at median home prices by metro region, the number of homes sold, new listings and more. In metro Denver, the median price of homes sold in July increased 17.6 from a year earlier. The median home price in our city was $535,000.

Despite a rise in home prices, the number of houses sold in Denver's metro area dropped compared with this time last year. According to the report, 6,024 homes were sold in July, a 12.6 percent decrease from July 2020 and a 7 percent decrease from last month.

In some good news, demand here has softened somewhat so homes aren't flying off the market quite as fast or for as much above list price as they were in the spring. Additionally, mortgage rates are remaining about as low as they've ever been, so buyers who lose out in a bidding war don't have to fear that they've missed their window to buy.

Here’s a breakdown of how the Denver housing market has changed amid the coronavirus pandemic:

New home listings

·       July 2021 listings: 6,221

·       Month-over-month change: -14.2 percent

·       Yearly change: -8.9 percent

All homes for sale

·       July 2021 listings: 9,409

·       Month-over-month change: -2.6 percent

·       Yearly change: -28.7 percent

In terms of home prices, Austin, Texas, had the nation's highest price growth. Home prices there increased 38.6 percent since last year to $485,000. Phoenix had the second highest year-over-year growth at 28.1 percent, followed by Salt Lake City at 26.1 percent.

If you’re ready to become a homeowner in Denver, the latest trends may be discouraging, but there are still some great values to be found. The first thing you want to do is find an experienced pro to help you navigate the process. Give Metrowest a shout today – we’d love to discuss your options!