Average house price in Denver broke another all-time record.
Average house price in Denver broke another all-time record in January and February, at $629,159 and $632,581 respectively for single-family detached properties.
For the month of January, the Greater Denver Metro housing market broke another all-time record again to a new inventory low with only 2,316 total properties on the market, which basically translates into an inventory shortage and an opportunity for appreciation to accelerate.
Single-family detached homes hit a record average price of $629,159, while attached properties hit a record of $397,792. Single-family homes saw a 103% close-to-list price in January and a drop to five days (median) in the MLS, down from six last month and 24 days last year. Year-over-year, the average house price increased 18.69%.
To put things in perspective, there were more homes purchased for the entire 2020 than any previous year. As long as the interest rates continue to remain low and inventory scarce, there will continue to be multiple buyers for every appropriately priced house, sellers across the State of Colorado will continue to have the opportunity to navigate through multiple offers and ultimately choose one they like.
For the Luxury Market, which are properties that have sold for $1 million or greater saw no signs of slowing down in January. Months of inventory increase slightly to 2.22 months of inventory in the detached luxury homes and 3.65 for the attached homes. In January, the luxury residential market was up 85.16% year-over-year for sales volume of $335,859,100, up from $181,393,127 from one year ago. The detached luxury sales volume was up 90.11% and the attached was up 48.36% from one year ago.
For the month of February, the average house price in Denver for single-family homes skyrocketed to $632,581, which was an 23.15% increase year-over-year. While many metrics still show detached properties are in higher demand than attached, the gap decreased in February. Attached properties saw a 16.29% increase in closings relative to last year at this time. The increase demand for attached properties propelled the market to average close price $401,552, first time the attached market has had an average price above $400,000. Year-over-year, the average price for attached property have increased 14.95%.
The market remains extremely competitive and the close-price-to-list-price ratio was at 101.90%, while months of inventory stood at only 0.55. “The question, when will we see a more normalized market?” Seasonality, vaccines and interest rates will be a few of the best indicators. As more of the population gets vaccinated, we may see increased listings throughout the summertime. More importantly, if interest rates start to increase, that may decrease buyer demand and changing the quantity of multi-offer situations. While no one has a crystal ball, using market indicators, creativity and perseverance will help buyer succeed in this hot market.
February showed no signs of slowing down in the Luxury Market with some interesting trends at hand. Overall, numbers show an excellent month for the luxury real estate in Denver with an incredible 446 sold homes year-to-date. The represents a 62.77% increase in sales overall from February 2020. In February, a total of 206 homes sold, a 10.75% increase from last month and a 46.10% increase year-over-year. While less competitive than other market segments, it is still fierce with February’s close-price-to-list-price ratio at 97.63%. Conversely, an interesting trend appears in the attached market with the number of closed residences down from 29 sales in January to 25 in February. This is still higher than 2020’s sale of only 15 total sales. However, the attached market was also experiencing a much longer time on the market, up 337.50% from the previous month. In January, the median days on the market was 8 and in February, it jumped to 35 days.