The Denver metro housing market appears to be booming, despite the pandemic.
August saw the most home sales and lowest housing inventory than any month of August on record, according to the latest report from the Denver Metro Association of Realtors.
The demand, however, meant that the average single-family home price was driven to a new record high, too: $606,330, a 5.5% increase year to date.
The trend reflects a similar one seen across the country, as Americans take advantage of historically low interest rates. New home sales in July soared to their highest level since December 2006, according to data released by the U.S. Census Bureau in late August. The median single-family home price increased to $330,600, or by 7.2%, compared with last year.
“Homebuyers looking to purchase a single-family home really struggled because there were 50.26 percent fewer homes for sale compared to August 2019,” Jill Schafer, chairwoman of the Denver metro realtor group’s market trends committee, said in a statement. “And we thought inventory was low in 2019.”
There were 5,496 active listings in August, down 41% year to date compared to last year. There were also 11% fewer homes added to the market in August compared to July.
Single-family homes that fall between $500,000 and $749,000 had 0.66 months of inventory, DMAR reports.
“Based on that number, we could be out of homes for buyers to purchase in two to three weeks if no other inventory hits the market,” according to Drew Morris, a market trends committee member.
“The only segment of the Luxury Market showing signs of slowing are condos where we have the highest months of inventory of any market segment that we track, at 5.3 months,” said Taylor Wilson, another member of the market trends committee.
“If our current trends continue,” he added, “COVID-19 may have just been a blemish on our year-end figures, as the Denver-area market is insulated by strong population growth, a variety of industries and quality of life that isn’t going anywhere.”
In June, Denver was deemed the second-most gentrified city in the country in a report produced by the National Community Reinvestment Coalition, a Washington, D.C.-based group whose members include community investment and development organizations, faith-based institutions and civil rights groups.