First Quarter Home Prices Increased 19.1% From the First Quarter 2020
Wednesday, April 21, 2021
The hot metro Denver real estate market continues to roll along. Inventory levels fell for the 11th month in a row and set a new record low for the 5th straight month with only 1,051 homes available for sale at the end of March. The number of homes sold has fallen 1.1% from last year, but that is not surprising since so few homes are for sale and the number of new listings coming on market is 11.5% lower than last year.
Despite the low inventory, the pace of sales continues to be strong. The 3,318 homes that closed in March were the most March closings in the past 10 years. The pending sales (homes under contract but not yet closed) at the end of March were 3,914 homes, which was a new March record. Demand is so strong buyers were offering 3.6% over the list price on average in metro Denver. That equates to $23,000 based on the average home price!
Price increases have been staggering with the average price increasing 19.1% year over year during the first quarter. 12.8% of the price appreciation has occurred in the past 6 months. Prices have been increasing 2% to 4% month over month in 2021 depending on the neighborhoods. At the current pace, home prices will easily increase 15% to 20% in 2021 and could even reach 25%! There has truly never been a better time to sell a home in metro Denver.