Home prices continued to rise in the 11 county Denver metro area in April, breaking records set in March.
Residential homes sold at a median price of $624,950, which is up 19% from this time last year. "Attached homes," things like condos and duplexes, sold at a median price of $440,000 and homes sold for a median price of $660,000, according to the latest numbers from the Denver Metro Association of Realtors.
The average price for homes rose from $797,700 in March to $825,073 in April. (Although, median prices tend to be a more accurate reflection of home prices in the market because they aren't overly influenced by the extreme ends of the price spectrum.)
Homes in the $300,000 to $499,999 range are increasingly in short supply, said realtor Jon Roberts, with only 1,672 hitting the market in April, leaving little stock for middle-class families.
Interest rates have risen to 5.52% for a 30-year fixed mortgage, which is up from last year's enticing lows. Even so, the Denver area's market continues to be competitive. Homes were listed on the market for an average of eight days before going under contract.
"The increased interest rates are already impacting the amount of inventory sitting on the market," wrote realtor Andrew Abrams, who chairs DMAR's Market Trends Committee, in an email to Denverite. "While we are still relatively low, I no longer need to use the word 'historic' as there were 610 fewer properties on the market last year compared to today. We normally see an 8.59% increase in month-over-month inventory. This month we saw an outstanding 44.26% increase."
More supply means prices will likely be going down in the months to come, he said. The market will probably be closer to normal.
"A more normalized market is healthier and breads healthier decision-making," wrote Abrams. "In the chaos of the recent market, buyers have been waiving their inspections, doing full appraisal gaps, and even offering to make their earnest money non-refundable before getting an inspection. While those risks paid off in the form of equity, those days have passed, and we are shifting to a more responsible market."
