Home prices in Denver metro area climbs 2.59% in May. This is the third consecutive increase in home prices in Denver metro area and is showing a consistent upward trend for all segments. The average percentage increase in home prices for all segments for March was 1.44%, April 2.56% and May 2.68%, respectively.
The combination of entering the spring/summer selling season and limited inventory continues to be the primary driver behind the appreciation in home prices.
As of the end of May, there were 5,228 active listings in the Denver metro area, which reflects a 13.16% increase from April and a substantial 43.15% when compared to the same period last year. For perspective, active listings from 2019 to 2023 stood at the following:
2019 – 8,891
2020 – 7,170
2021 – 2,075
2022 – 3,652
2023 – 5,228
Real estate continues to be very neighborhood specific, especially for single family homes. Two similar homes in different areas of town can perform widely differently, where one will receive multiple offers selling to the highest bidder and the other may linger on the market with multiple price reductions. Conversely, sellers are adopting a more realistic approach and exploring pricing strategies and positioning of their home to attract a larger pool of potential buyers and receive more favorable offers.
Due to the rise in interest rates and the market gradually stabilizing, an increasing number of buyers are opting to wait for their ideal home to become available before taking action.
The Denver metro area saw a 2.56% surge in pending sales from April to May, with a total of 4,406 pending sales. In contrast to the previous year when pending sales reached 5,734, there was a substantial decrease of 23.16% in pending sales year-over-year.
Additionally, home prices in Denver metro area for single family homes reached $789,911 in May, and the median days in the MLS dropped to from 7 to 6 days indicating how fluid the market is once again.
The number of active listings in the condo market currently stands at 1,508, which reflects a 10.64% increase from April and a whopping 83.01% when compared to the same period last year. The average close price rose to $486,096 from $471,024, resulting in a month-over-month increase of 3.20%.
The key takeaway from this month’s market update is that “In the current real estate landscape, buyers are making decisions based on immediate needs rather than desires”.