Low inventory and demand fueled in part by low interest rates have put buyers at a disadvantage in the Denver area housing market.
The median price for a single-family home was a record $510,000 in September, according to the Denver Metro Association of Realtors’ latest monthly report. That was up slightly over August and up 13.33 percent over September 2019.
Buyers “have to be ready to pay more,” Denver-area mortgage expert Nicole Rueth said in comments accompanying the report.
On average, sellers were getting slightly more than they asked. And buyers had to act fast, with the median time homes were on the market at less than a week.
Andrew Abrams, who chairs the Denver Metro Association of Realtors Market Trends Committee, called it “the toughest market to buy a house in Denver metro history.”
Just 3,041 single-family homes were available for sale, sharply lower than the previous low of 5,693 in September 2017. Abrams said some potential sellers may be reluctant to consider moving during a pandemic. Few may feel pressure to sell when the rising prices mean increasing equity for them.
Buyers, on the other hand, may be looking for more space because they are spending so much time at home during the coronavirus outbreak. Low interest rates are attractive, even if home prices are high.