Updated record for median home sales in Denver of $825,000

Like a fashion model from evilDenver’s housing market defies gravity.A market trends report just released by the Denver Association of Metro Realtors reveals a new record for the median home price for a detached home in the metro area in April: a skosh of over $825,000. That’s an increase of more than $30,000 since March, and more than $100,000 above average at this time last year. The average price crossed $684,000, which is also a six-digit rise from twelve months before that.

What makes these numbers even more surprising is that the number of active listings and new listings for the month of April was significantly higher both on a monthly basis and on an annual basis. But this increase in supply is still not enough to keep up with the demand from home buyers.

DMAR numbers reveal that 5,023 detached homes hit the market in April, up from 4,332 the previous month. This represents an increase of 15.95 percent from March and 8.82 percent from the previous April. Closed sales rose from 3,312 in March (a figure that was revised more than 200 from the initial estimate) to 3,452 in April, changed 4.23 percent month over month, and jumped 12.12 percent from a year ago.

A graph from the report, running from January 2008 to April 2022, sets the record straight. The yellow line corresponds to active listings at the end of each month, while the blue line shows sales that were closed during the same periods:

Click to enlarge

The median cost of a detached home in Denver topped $700,000 for the first time in May 2021, on course to reach $728,385 in June. This was followed by a slight slide: $687,176 in July, $685,832 in August, $688,629 in September and $684,700 in October.

But in November and December, the average once again broke the $700,000 mark, falling at $703,847 and $704.716, respectively, before slipping to $68,812,27 in January. That decline proved short-lived: the February 2022 average, revised to $738,472, was the highest DMAR had ever recorded, and the newly revised figure for March was $793,836, which seemed like a staggering amount at the time. But $825,073 in April left it in the dust.

The average sale price in the Denver metro in April of 2021 was $696,320, according to DMAR.

The median price for a detached home in the metro area rose from $635,200 in February to $660,000 in March to $684,550 in April — nearly $50,000 in two months. In April 2021, it was $582,000.

The average number of days separate home listings lasted in April was nine, down from eleven in March; The average length of time left is four days. Meanwhile, the usual closing price was 107.29 percent of the list, compared to 106.67 percent in the previous month – evidence that topping the competition has become more expensive.

Despite these numbers, real estate broker Andrew Abrams, chair of the DMAR Market Trends Committee, sees signs that the Denver market may be back on the ground soon. “While buyers think they overpaid if they bought two months ago, this is not the case,” he says. “They probably got a slightly lower interest rate, and the market continues to rise, but not quite as fast. In the recent market chaos, buyers have been giving up on inspections, doing full appraisal gaps, and even offering to make their non-refundable serious money before the inspection. We are now moving into a more responsible marketplace. There will still be bidding wars, valuation gaps, and limited screening items on future properties, but their frequency will be less.”

For now, the sky remains the limit. Click to read the Denver Metro Realtors Association’s May 2022 Market Trends Report.