Buyers in metro Denver had to move quick if they wanted to secure a property in February before rising mortgage rates put their purchase out of reach. Meanwhile, industry insiders think the Mile High City could be in for another year of double-digit home price gains.

According to a monthly update from the Denver Metro Association of Realtors (DMAR), the median or mid-point price of a single-family sold in February was a record $635,000, up by $36,000 or 6% from January and 19.8% from a year earlier. The gain in the median price of a condo sold was less striking, rising 1.25% on the month to $405,000, but an increase of 19.6% on the year.

Andrew Abrams, chairman of the DMAR Market Trends Committee, said that with the continued demand and lack of inventory, prices will increase and lead to another year of double-digit appreciation.

Sellers listed 4,193 homes and condos on the market last month, which is a slight improvement from the 3,478 listed in January. Buyers closed on 3,202 homes and condos, while another 4,101 were pending or headed toward a sale.

Strong buying demand continued despite mortgage applications falling to lows not seen since December 2019. With 30-year mortgage rates topping 4% last month, a full percentage point above where rates were a year ago, more buyers are finding themselves priced out.

It’s certainly a tough time to be a buyer, but with the right team on your side it is possible to land the house you want in the Denver metro area. Ready to see what’s out there? Give Metrowest a shout today and we’ll discuss your options!