The Denver-metro housing market remained strong in September, even though prices dipped somewhat from August, as they typically do at this time of year.
“The Denver area housing market remains among the hottest in the country,” Kirby Slunaker, president and CEO of REcolorado, told Denver Real Estate Watch, reacting to the Multiple Listing Service’s latest statistics. “Sellers continue to bring new listings to the market, holding inventory levels steady and benefiting buyers who are enjoying greater selection and moderating prices.”
Average sold prices dropped from $363,625 in August to $353,197 in September. This marks the fourth consecutive month of falling prices —a 5.8% decline since their record high of $374,890 in May, according to Denver Real Estate Watch. (Prices are still 12% higher, however, than they were in September of 2014.)
The number of active listings also dropped slightly to 9,051, down 1%, from August’s 9,144.
With inventory tight and demand and prices high, despite any cost drop, no one is disputing that it’s a seller’s market. Still, at least one condition remains extremely favorable to buyers: near-historic low mortgage rates.
“Late last month, the Federal Reserve decided to leave interest rates alone and, within days, mortgage rates dipped even lower,” Anthony Real, chairman of the Denver Metro Association of Realtors Market Trends Committee, told Denver Real Estate Watch. This, he notes “has homebuyers giddy with excitement and ready to line up to write offers during October – which is generally considered the best time of year to purchase a home.”
Those buyers who aren’t reassured by low mortgage rates might take solace in the fact that things could be far worse when it comes to home accessibility. While Denver area housing costs remain indisputably high, they look like bargain basement prices when compared to some other U.S. cities. The median sale price in New York City borough, for example, is now $998,000, a nearly 10% increase from a year ago. “That’s the second highest level on record,” reports CNN Money.
The average price per square foot is an eye-popping: $1,497 — “the most in a quarter century,” according to CNN Money. The average per square foot in Denver? A mere $275.