Denver’s housing market remained heated in February, with some homes selling as much as six figures above the asking price.
That’s the news from the Denver Metro Association of Realtors’ (DMAR) latest monthly report, which details February market statistics. The report shows a continuation of the city’s long-term trend of low inventory, high demand, and accelerating prices.
“I have repeatedly seen houses in good condition receive double-digit offers with prices escalating six figures above asking price,” writes Andrew Abrams, chair of the DMAR Market Trends Committee, in the report.
In fact, he notes, the close-price-to-list-price rose last month to an “unprecedented” ratio of 104.75%.
Inventory increased 3.55% from January to February, but the active listings at month’s end remained exceedingly low, at 1,226— a nearly 40% drop from February of 2021. The historic average number of listings for February (since recordkeeping began in 1985) is more than ten times higher – at 13,220.
Single-family residential properties sold in an average of 15 days. Meanwhile, the average closing price increased 6.58% over January, and 16.99% over February of 2021, to $647.776.
Even lots on the market from the recent Marshall Fires—ten were listed in February– are carrying significant price tags, ranging from $300,000 to $799,000.
If there is one hopeful takeaway for buyers paying large price tags, however, it’s that they will reap the reward of the sizzling market. Their investments seem to be paying off – and quickly.
“All those people paying over asking price last year have become whole,” one real estate broker told the Denver Gazette. “It seems as far over asking price as people are going, some are already gaining equity with these rising prices.”