The Denver real estate market continues to be summed up by four words: low inventory, rising prices.
According to market statistics recently released from REcolorado, the active number of listings dropped 1% in February from January, in a market that was already tight. Active listings are down overall 25% from a year ago. Perhaps in a bright spot, however, new listings were up 14% over the previous month and 4% over a year ago.
The data shows that prices continue to rise. The average sold price for a home increased 5% in February over January (at $344,796). This represents a 17% increase in prices over this time last year.
For sellers, it’s a dream market, with many properties bringing in multiple bids and often above-asking price sales. By contrast, buyers are finding a challenging scenario.
The Home Buying Institute attributes the current situation in the Denver area to four factors: low supply of properties; a steadily growing population; Denver’s attractive job market, which has recovered nicely from the recession; and low mortgage rates. All of these factors continue to fuel demand and place upward pressure on prices.
Buyers may find some relief down the road, according to the Home Buying Institute. The Institute predicts that the double digit rise in average home prices will end in 2015, noting that such increases “will probably be limited to a handful of housing markets in California and the Southwest.”
Thinking of listing your home in this seller’s market? Find out more about the process here.
Want to find out more information about buying a home in Denver? Read more here on our website.