Median home price in metro Denver escalates dramatically
The median home price in the metro Denver area saw an increase year-over-year of anywhere from 15.2% in Wheat Ridge to 41% in Lone Tree, with everything in between. The metro area has been at less than two months of inventory since 2013, and less than one month of inventory for the past 15 months.
At the Federal Reserve, while it expects slower growth this year, there are indications that interest rates may begin rising in the third or fourth quarter of 2022. This amid growing fears of higher inflation.
Chairman of the Board of the South Metro Denver REALTOR® Association, Brian Anzur, said, “This upward median price trend will continue through 2021, so it is imperative that buyers be well prepared before they take a dive into the market.” Anzur anticipates that “until we see interest rates rise and more homes being built, we will see the trend continue.”
Lawrence Yun, Chief Economist for the National Association of REALTORS® recently noted the “Housing shortage has been decades in the making from massive underproduction of homebuilders. Many small business entrepreneurs went out of business during the last housing foreclosure crisis in 2008 – 2010 and many never came back, partly due to excessive government regulation.”
Of course, this market is good news for sellers receiving offers exceeding the asking price, sometimes by thousands of dollars. “In a market like this, it is imperative that buyers and sellers work with a professional REALTOR® to help them navigate a market as volatile as we are experiencing in the Denver area,” Anzur said.
About SMDRA: Established in 1945, SMDRA is the second largest local real estate association in Colorado serving over 5,200 REALTOR® and business industry partners throughout the Denver metro area.
Members who hold the title REALTOR® are licensed real estate professionals who choose to voluntarily subscribe to the National Association of REALTORS® strict Code of Ethics that goes above and beyond license law. The word REALTOR® is a registered trademark of the National Association of REALTORS® and can only be used by members of a local, state and national association of REALTORS®.