After a long winter season packed with record snow and real estate sales, spring has finally sprung. In what has become a routine occurrence, the Front Range market has continued to flex its muscle and drive much of the state and local economy.
The first three months of ’21 have continued a long trend of lack of listing inventory and skyrocketing home values, but it has been even more intense, making it even more difficult for buyers to find, negotiate, and close on a home. Buyers are going to extreme lengths to purchase homes, offering well over list price and waiving contingencies, which has driven the average price of homes to new heights and in record time.
Year-over-year (YOY) appreciation shot up 15% from $511,511 to $589,587 this March, while month-over-month appreciation is at 6.9% from $551,542, an all-time high. Shockingly, if a buyer waited just one month to buy a $500,000 home from the end of February to the end of March, they would have had to pay $35,000 more for that same property.
On par with recent months, median days in the MLS went down to four, most of those being spent on negotiations, while homes are selling for over 103% of their asking price. Whether looking at detached or attached properties, it is a strong seller’s market across the board.
As the summer months draw near, expect interest rates to tick upwards, with pricing continuing to do the same and homes on the market at record lows. These factors often lead to the question: “Are we getting close to a bubble?” If you follow basic supply and demand metrics, it is difficult to think that we are in one but the eyes of many economists will be on real estate throughout 2021.
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© Madison and Company Properties, LLC | APRIL 2021. Madison and Company Properties is a registered trademark licensed to Madison and Company Properties, LLC. Locally owned and operated. An equal opportunity company. All information and data deemed reliable but not guaranteed. If you have a brokerage relationship with another agency, this is not intended as a solicitation. Sources: January, February, and March 2021 DMAR Market Trends Reports. All data presented in this report was provided by REColorado. The data was pulled at 9:00AM (mountain time) on the first day of the month for the preceding month(s). All rights reserved to Denver Metro Association of REALTORS®. Metro Denver Economic Indicators: Monthly Economic Indicators (http://www.metrodenver.org/research-reports/monthly-economic-indicators/). Median existing-home price for all housing types in February 2021 sourced from NAR® (https://www.nar.realtor/newsroom/existing-home-sales-descend-6-6-in-february)