High demand and low supply have created an extreme seller’s market in the Denver area, with the median price of a single-family home reaching an all-time high of $464,000 in August.
In its latest monthly sales report, the Denver Metro Association of Realtors added that 5,959 total homes sold last month, the most for any August on record. Sales were down 18.73 percent from July.
Active listings were at 5,496 at the end of August, down 41.22 percent compared to last year. Just over 11 percent fewer homes were added to the market in August compared to July.
Jill Schafer, who chairs the realtor groups market trends committee, said owners have told her they are hesitant to put their homes on the market because the low inventory leaves them few options for their next home.
“They’re really stymied by not knowing where they could go,” she said.
The coronavirus could be affecting demand, with some buyers saying they are seeking more space to work from home, she said. But the main driver of demand is low interest rates. That mirrors national trends.
In some cases, a mortgage could be less than a new home owner was spending on rent, Schafer said.
The real estate sales report covers 11 counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.