As the pandemic loosened its grip on the US and its economy, real estate took the lead this spring in bringing confidence back to consumers. Buyer demand met an all-time high, while record low inventory and even lower interest rates has made 2021 the most competitive market in history. The combination led to a new average sales price record of $700,559 for single-family homes in Denver, with homes selling in less time than ever.
Sellers continue to hold the upper hand at the midway point of 2021 as buyers are forced to offer more than list price and waive any contingencies just to be considered. Often it is not enough, and the frustration begins to mount. Buyer fatigue has started to show as many prospective buyers are going on vacation, are settling in for a new school year or are tired of getting beat out on offer after offer. While this fatigue may continue, most serious buyers will stay in the hunt as interest rates found a new low in Q2.
The pandemic affected segments of the market differently, and over the last year townhome and condo sales came to an abrupt halt due to fear around sharing spaces, the riots downtown, and concerns about the pandemic. However, the data from May shows that Denverites are ready to start sharing spaces again, and attached single family homes are as hot as they were pre-pandemic.
As we begin the second half of the year, expect more pricing records to be set throughout the state and region, and for sellers to maintain their strong hold on negotiations. For buyers, be patient, have a plan and a ready loan. Let your REALTOR® find the competitive edge you need to close on your new home. Hang in there friends; Denver is still one of the most sought after places to live in North America.