By Margaret Jackson / NewsBreak Denver
(Denver, Colo.) Bidding wars and offers over asking price may become a thing of the past as the inventory of homes for sale in Denver increases.
A new NerdWallet report found that the number of homes for sale in metro Denver increased 126% in the second quarter compared to the first quarter of this year. In the second quarter, there were an average of 3,492 listings.
But that doesn’t mean housing has gotten less expensive. In Denver, the median list price for a home was $692,121 — about eight times the income for most first-time homebuyers. That’s more than double the threshold for affordability of three times buyer income for first-time buyers.
While many other metro areas, including San Francisco and Los Angeles, have seen list prices decreasing, Denver prices increased 6% year over year.
Still, rising inventory may lead to lower prices in the third quarter. All metro areas saw a quarterly increase in the average number of listings — up 51% on average. In addition to Denver, the most significant quarterly increases occurred in some of the hottest housing markets in the country: Salt Lake City, Seattle, Austin and San Jose.
The first quarter also saw mortgage rates rise faster and higher than had been predicted for 2022, and rates are expected to continue climbing. While this could stall demand and allow price increases to slow, housing inventory is still a long way from pre-pandemic levels, according to the report.