Denver homes flew off the market in April nearly as fast as you could say “What’s the asking price?”
Indeed, the Denver Metro Association of Realtors’ (DMAR) monthly report shows the average home was snapped up in 13 days. That’s 38.10% faster than last April.
As the Home Buying Institute (HBI) put it: “The Denver, Colorado real estate market has officially entered turbo mode. So lower your safety bar and hang on for the ride, home buyers.”
According to a recent study by Realtor.com, notes HBI, the Denver-Aurora-Lakewood area boasts one of the fastest real estate markets among major cities in the country. “Steady declines on the supply side, combined with strong activity on the demand side, have made it one of the hottest housing markets in the country during 2021,” notes HBI.
While active listings increased 35.03% in April over March—the largest percentage increase between those two months on record—there were still only 2,594 single family homes for sale at the end of the month. This compares to an historical average of 14,929 for April.
No wonder buyers are rushing to secure a deal.
“I had a seller in Castle Rock (who)… had an offer, sight unseen, before we even went on the market,” one real estate broker told Denver’s CBS4. “You have these couples and these families coming in from cities like San Francisco, Chicago, New York, where $800,000, $900,000, $1,000,000 buys you a shoebox there,” she said.
Denver-area homes had an average closing price of $623,825. That’s 24.20% higher than last April as appreciation continues to take a bite out of buyers’ wallets.
While some worry that the market may be headed for a bubble, Chair of the DMAR Market Trends Committee Andrew Abrams seemed to be discouraging such thought in his monthly report. “We have seen the residential real estate market drive 90 mph for almost a year now,” Abrams writes. “…What happens when you take your foot off the gas going 90 mph? You don’t go in reverse (could you imagine?). You simply keep moving forward at a slower pace.”
In other words, buyers should keep their eye on the prize — and step on it. “I actually wouldn’t wait,” the real estate broker who spoke with CBS4 advised. “What I would do is cash in on the low interest rate that we have right now.”