Average home price in Denver metro area hits $772,170 in April for single family homes, which reflects a 3.84% increase from the previous month. Both the average and median home prices increased month-over-month as prices have been trending upward since February. Inventory continues remains extremely tight as homes go under contract almost as quickly as they become available.
As of the end of April, there were 4,620 active listings in the Denver metro area, which reflects a 2.30% rise from March and a substantial 44.19% increase in inventory when compared to the same period last year. However, one of the primary reasons why the inventory remains low is that many sellers are rate-locked. For instance, interest rates were much lower in April of last year compared to this year, which has caused many homeowners to hold off on selling their properties. Traditionally, at this time in the spring selling season, we see an increase in both active at month-end as we as well new listings. As a result, the market has seen a shortage of available inventory, which has driven up home prices in the Denver metro area.
Due to the low inventory of available homes, many homebuyers have turned to purchasing newly constructed properties, leading to a notable 9.6% increase in sales during March. Furthermore, builders are continuing to provide incentives, such as buydowns and covering the closing costs of buyers, in order to increase demand for their properties.
The Denver metro area saw a 10.51% surge in pending sales from March to April, with a total of 4,489 pending sales. However, there was a 6.71% decrease in new listings from the previous month, with a total of 4,758 new listings recorded. In comparison to last year, the decline in new listings was even more significant, with a drop of 30.94% year-over-year.
In April, the number of closings in the Denver metro area decreased by 7.91% to 3,701 when compared to March, which saw 4,019 closings. However, there was a much steeper drop of 29.87% year-over-year, as last year in April there were 5,277 closings.
Median days in the MLS dropped from 10 days to 7, indicating how rapidly the market is once again moving.
Average home price in Denver metro area for condos stood at $471,997, a 0.84% decrease from previous month.
The real questions in everyone’s mind is, when will more inventory hit the market? There are several tenant-friendly House Bills that may prompt landlords to consider selling their properties, which could increase the inventory. The spring market’s potential for inventory remains uncertain, but hopefully, we can expect to see more new listings.