By Margaret Jackson / NewsBreak Denver
(Denver, Colo.) The number of homes hitting the market increased in March. Still, salesprices reached an average historical high of $705,812, according to the Denver Metro Association of Realtors market trends report.
Month-end active inventory went up 81.16% from February to March, according to the report.
“Earlier in the year, buyers offered six figures above the asking price while competing with dozens of offers,” DMAR Market Trends Committee Chairman Andrew Abrams said. “With the recently increased inventory, it is more common to compete with just a few offers.”
Although competition has loosened, the residential real estate market is slow to react to change, he said. Even with only a few competitive offers, it’s standard for buyers to make aggressive offers, elevating the price and terms.
“With record-high sales prices, interest rates increasing north of 4.5% and an average close-price-to-list-price ratio of 106.46%, the monthly mortgage rate of a traditional buyer has never been higher,” Abrams said.
Denver’s residential real estate market appreciated 19.88% over last year. Last month alone, the average sales price increased 9.02%.
Living in luxury
Meanwhile, buyers in the luxury market — $1 million and above — saw the largest rise in inventory of any price point. The number of single-family homes listed for sale increased 58.22%, and attached homes for sale increased 60.53% from February.
Even with more inventory, bidding wars persisted, with luxury homes going an average of 7.66% over list price.
“Offers of $300,000 over asking price were not uncommon, with one home we know of closing for $600,000 over list price,’ said Colleen Covell, DMAR Market Trends committee member.
“The dramatic escalation in prices of expensive homes may intimidate some buyers, leaving them feeling that the market is reaching its peak and they should pause in their search in hopes that prices will stabilize. But sellers need to stay grounded in their pricing strategies as buyers can sense when a house is priced too high — even in this hyper-charged market. We are seeing sellers get carried away with the price frenzy and end up losing out.”