Real estate in the Mile High City has hit a “high plateau,” appropriately enough, according to the latest from the Denver Metro Association of Realtors.
In April, the median price for a single-family home was $420,000. A month before that it was $406,000.
It may be that Denver real estate is entering an era where $400,000-level prices are normal for single-family homes.
Generally, Denver home prices aren’t increasing as fast as they used to, but they are still moving upward. So instead of hot neighborhoods getting even hotter, neighborhoods with lower property values in 2015 are seeing the largest percentage increases in home values now.
Or as DMAR’s Steve Danyliw wrote in the agency’s release:
“The price of housing is on a higher trajectory than wages, and the affordability gap in the middle is getting wider. Is this sustainable? In my opinion, no.”
One way to see this creep is to look at the price ranges where homes are selling. And when you compare the number of homes sold this year so far to last year at the same time, it’s clear where some of the decreases are.
For both condos and single-family homes, there’s a decrease in the number of homes sold at the lower price tiers and an increase in the middle bracket.
Of course, everything is relative and only time will truly prove whether this price threshold stays. We’ll have a better idea of whether this is truly the new normal after home selling season ends in the fall.