For the first time ever, the average Denver home price tops $600000. This is truly a milestone for the metro area. Sure, you can still buy houses around Denver for much, much less. That’s the power of averaging. But wow, just a few years ago the average value was tremendously less.
Sales Jump In July VS March
Its more than average home values climbing. In the just released DMAR statistics, we see for the eleven county metro area a smashing one thousand nine hundred plus more sales comparing July with March.
Of course, you would expect more sales in summer months than Spring. But even comparing July to June there was 8% increase in closed sales.
While summer is the hot time to sell homes, we usually see things trend a tad slower as summertime wears on. Why the change? Sales were definitely off in the Spring with the lockdown due to Coronavirus. So, some of this is pent up demand. And, more than ever before, our homes are incredibly important. They have become school, workplace, gym and the center of our lives. Demand for a safe place to call home is impacting Boulder and Denver home price values in 2020.
Denver Home Price Climbs In Sellers Market
Expect to see values continue to climb. Especially for entry level homes and those priced under a million. Some buyers, in say the luxury and ultra price points may discover there is a simultaneous Buyers Market occurring. Luxury condos and very expensive homes have slower absorption rates compared to entry level housing in the Denver metro area.
Low Inventory Collides With Strong Buyer Demand For Denver Houses
At the same time we are seeing home buying demand on the rise, we are also witnessing historically low inventory of houses for sale. By some estimates, the number of Denver metro houses for sale is down by 31% year over year.
Think on that for a moment. For every three houses offered for sale in 2019, only two are available in the summer of 2020. And that is running headstrong into increased buyer demand with 8 percent more sales vs July of last year.
Anecdotal Research On The Popularity of Denver
I’ve been very involved with Ohio Wesleyan University for several years. For six years through the Spring of 2020, I proudly served on the OWU Alumni Board. As I rotated off this Spring, I was unable to say goodbye in person to all my friends – no travel in the age of Coronavirus. But, I’ll be back for sure.
Meanwhile, here in Denver I’m the local alum that is always working the phones and calling alumni about upcoming events. A few years ago, in Boulder that list was about two dozen names long. In Denver I could knock out all the calls in a single day. No more. Denver has well over 450 alumni from Ohio Wesleyan. You might be wondering, “what’s the big deal?” Well, its a tiny school with less than forty thousand living alumni worldwide. The vast majority of graduates are Ohioans (as was I before relocating to Colorado in the early Nineties).
For future alumni moving here, they may be shocked by the Denver home price of the future.
That over one percent of our alumni live just in the Denver metro area – not even counting all of Colorado – that’s a big deal. People are moving here every year. That popularity is driving the Denver home price average to new levels.
In fact, here’s a crazy statistic. In my neighborhood of the The Trails at Coal Creek, Lafayette CO, there are three households with OWU grads. Mike (recent), Jordan (early 2000’s) and myself (class of ’88) all own homes here.
About Bob Gordon Blogger Realtor Author
I’m Bob, blogging here at Boulder Real Estate News for several years now. This post was inspired by a recent article in a great magazine, 5280. The magazine is all about life in the Mile High City and I encourage you to get a copy. I’ve been selling homes for friends and clients just like you since 1995. I enjoy writing the blog and curating a newsletter to keep both you and myself well informed about the local housing market in Boulder and Denver.