In late 2021 and early 2022, metro Denver homebuyers had a shocking lack of properties to pick from. Bidding wars raged as multiple offers for homes poured in as soon as they hit the market. The competition was fierce, and people looking for a home fell into despair as they competed against deep-pocketed investors.
Some of that frenzy appears to be settling down, according to the Denver Metro Association of Realtors latest market trends report, which showed that 81.16% more homes were available at the end of March than at the end of February.
Things are looking up for buyers, year over year, too. Last month, there were 2,221 new listings at the end of the month, or 15.62% more than in March 2021. More supply, in theory, means lower offers, fewer bidders and more choice. DMAR anticipates a rising number of homes hitting the market in the months to come.
“While we currently sit at 19.88% appreciation compared to last year, more inventory at the end of March is just a glimpse of what we can expect to see through the spring and summer market,” said Andrew Abrams, DMAR’s Market Trends Committee chair, in a statement. “While waiting may create more options, it does not guarantee more value.”
That’s the burn. In March, the average sales price shot up 9.02%, or $58,418, Abrams noted.
“When you take your foot off the gas going 90 miles per hour, you are still moving forward,” he wrote. “Just not as fast. The decreased speed will be felt in the coming months, creating the allure of more balance while the start line (list price) has been elevated to levels at rapid speed.”
But just because there’s hope doesn’t mean things are easy for those people looking to buy a home. As Abrams noted, in Denver, “the monthly price of a mortgage has never been higher.”