By Margaret Jackson / NewsBreak Denver
(Denver, Colo.) Even as more homes hit the market during the spring selling season, prices continue to rise.
The average price of a single-family home in metro Denver was $825,073 in April, a 3.93% increase from March, according to a report from the Denver Metro Association of Realtors (DMAR).
“While buyers may be thinking they overpaid if they bought two months ago, this is not the case,” said Realtor Andrew Abrams, chair of the DMAR Market Trends Committee. “They likely got a slightly lower interest rate, and the market is continuing to rise, just not as fast.”
Increased interest rates are impacting the amount of inventory on the market. While the number of homes on the market in metro Denver is still relatively low, the word “historic” is no longer applicable — there were 610 fewer properties on the market last year compared to today.
The chaos of the recent market had buyers waiving inspections, doing full appraisal gaps, and offering to make their earnest money nonrefundable before getting an inspection, but the market is shifting back to normal.
“There will still be bidding wars, appraisal gaps and limited inspection items on future properties, but the frequency of those will be less,” Abrams said.
Inventory in the luxury market also is rising, with a 57.65% increase in new listings from this time last year. Because of inflation, more homes will cross the threshold into the luxury market as list prices rise and bidding wars push sale prices 20% or more over the asking price.
The close-price-to-list-price ratio jumped to 108.45%, up 5.68 percent from 102.62% last year.
“The spring selling season is off to a great start, and it feels as though more inventory is becoming available than even the data presents,” said Realtor Libby Levinson-Katz, a DMAR Market Trends Committee member. “My partner and I have had more listings this year than we’ve ever had, which feels like a slight change in the marketplace.”