Working people looking to buy a single-family home continue to face a tough market in Denver.
Local realtors sold just 14 houses under $299,999 in July, and sellers have only 46 in that price range listed on the market, according to the Denver Metro Association of Realtors monthly market trends report.
In June, the trade group for the real estate industry decided to quit studying homes under $500,000 because there weren't enough available.
The median price of a house in the Denver Metro is $650,000, putting it far out of reach for most residents.
If you could afford a standard 20% down payment of $130,000 on houses at that price point, you would need to make more than approximately $160,000 a year, depending on your expenses. That's according to the Re:Colorado House Affordability Calculator.
That's more than $73,000 over the area median income for individuals in Denver and nearly $36,000 more than the area median income for a family of four.
To put things in perspective, the city pays a cop fresh out of the police academy $71,322, according to Denver Police Department data.
An entry-level Denver Public Schools teacher starts at $54,141.
A library custodian makes under $37,000 a year.
The city employees who keep the region running are not close to making the area median income and are unable to afford most houses on the market.
Not everyone wants to live in a single-family home.
The median price of a home in a multi-unit building like a condo, a townhome or a duplex, is currently $414,000. You would still need to make roughly $108,000 a year -- far out of reach for entry-level police officers, teachers and custodians.
Happily, for those looking for attainable multi-unit homes, there are more being sold under $300,000. Which may seems doable, but remember to factor in the costs of homeowners association fees.
Last month, there were 193 of these properties at this price point sold and 210 are still listed.
The number of new listings on the market is down nearly 25% from this time last year. People are just not eager to sell these days.
Homeowners, who took advantage of low interest rates and now want to sell, feel stuck.
"Would-be buyers and sellers are weighing the 'golden handcuff' dilemma," explained Libby Levinson-Katz, in DMAR's latest market trends report. "They love their historically low interest rates on their home but no longer love their home."
People are learning to appreciate -- or at least tolerate -- what they have, and they're deciding not to buy.
Sellers whose homes are sitting on the market unsold are getting antsy. They are willing to make concessions to lure potential buyers, and that's something few have been willing to do in recent years. For home shoppers, that's a good thing.
"This may be the best time to buy in recent history as buyers can finally negotiate after enduring years of a strong seller's market," Levinson-Katz said.
