Support the independent voice of Denver and help keep the future of Westword free.
How crazy is the Colorado real estate market right now? According to new statistics from the Colorado Association of Realtors, around 60 percent of homes sold in the state in March were above the original asking price – proof that bidding wars are now the rule rather than the exception.
Winter is typically a slow season for Colorado real estate, the group confirms. However, she notes that the trends “have now reached a fourth straight month of unprecedented buying behavior as we enter the spring season and shatter record after record.”
The situation is particularly acute in the Denver metropolitan area with seven counties, in which active offers fell by 78 percent compared to the same period in 2020, which led to a price jump of 11 percent since the beginning of 2021 and 15.6 percent compared to the previous year. But while single-family homes stay hot, condos are not selling at the same pace, especially in Boulder and Denver, possibly because people want to keep their distance during a pandemic.
To better understand how this situation is playing in the greater Denver area, here are insights from CAR brokers operating in four sectors: Arvada / Golden, Aurora, Boulder / Broomfield, and Denver County.
Arvada / Golden
Realtor Barb Ecker: “The record low in Jefferson County continues to drive buyers to new levels of frustration in one of the most aggressive real estate markets we have seen in a long time, and there is no end in sight. For Single Family Homes The median sales price rose in March again to $ 600,000 as properties were on the market an average of twelve days, and the median sales price for condos / townhouses was $ 340,000, with properties only being on the market for 16 days.
“Grateful buyers cover the difference between the sale price and valuation at the cash deal, and there are many cash-only buyers who will win the offer if the houses go on sale later in the week and are signed by Monday.”
Realtor Sunny Banka: “While we usually like to watch the flowers and the number of homes for sale rise each spring, the latter of these two annual events unfortunately doesn’t happen in 2021. The entries are in Aurora, Centennial and Adams County 73 to 85 percent depending on location. In March 2020, Arapahoe County had a total of 866 entries, at the same time this year we found 185 active entries. With extremely low inventory, prices are close to Arapahoe County’s average now at $ 522,000 Arapahoe County condos are also seeing the same drop in inventory, but prices rose 7 percent in March 2020 to an average of $ 300,000.
“Adams County shares the same inventory shortage, with active listings down 85 percent and home prices up 12.3 percent, to a median sale price of $ 455,000, up 12 percent to $ 320,000.” Dollars for March 2021.
“The city of Aurora had 104 single-family homes available in March, down 81 percent from March 2020. The average price for all Aurora areas is $ 467,000, making Aurora one of the more affordable options in the area.” Greater Denver area. The condominium inventory also declined 84 percent year over year, bringing the average price up 6 percent year over year to $ 278,000. “
Boulder / Broomfield
Realtor Kelly Moye: “Will it ever end? Even though it’s only been four months since our market really recovered, buyers, sellers and brokers continue to ask the question. The extremely low inventory levels and inflated prices are not consistent with a sustainable, healthy market.” , and yet it seems to continue into spring with no end in sight.
“Boulder County has 26 percent fewer listings than this time last year when we were in a lockdown, so the decrease is even more significant. Prices are rising, up 19.9 percent since January. Most single-family homes are experiencing a multi-offer situation where buyers have to offset lower appraisals in order to win the property.
“Broomfield County is experiencing more of this. With 19 percent fewer offers in both single-family and townhouses, prices have increased 15 percent for houses and a whopping 21 percent for townhouses since January. The steady flow of people moving here (especially from California) has brought demand to a near record level.
“And then there’s the Boulder condominium market. It’s the only segment of that market that hasn’t seen the same appreciation and demand. With a very modest 2.4 percent increase since January and an average of 60 days on the market.” This particular category is nowhere near as good as its single family neighbors. It may be perceived density of condominium living or maybe fewer students, but whatever the reason, this part of our market is not performing like the rest of the front line Range.”
Realtor Matthew Leprino: “As this is the first year-over-year comparison of COVID to COVID, we’ve seen amazing growth in the freestanding housing sector while the condominium market has lagged far behind its wild and savage siblings, with an average price increase of 19.4 Percent in just one year, demand for freestanding products nearly doubled by 11.1 percent from 2019 to 2020, and prices rose less than 1 percent the previous year, compared to the rise in condominium prices in March 2021 was just 2.6 percent higher than last year. Given price increases, which are hardly new in Denver, the condominium market has grown steadily over the past few years alongside its more popular siblings, compared with a 2.6 increase in March Percent a drastic decrease from 2019 to 2020 with a price increase of 13.5 percent ent and well below the average price increase of 7.32 percent for condominiums over the past five years.
“As COVID veterans, we can all understand the demand for more space, which now includes office life, home schooling, and new demands on a home. The demand for a detached house is in line with this trend and it certainly doesn’t seem to be falling anytime soon. What we can see in the future, however, is that with median price growth from $ 527,000 to $ 630,000 in just one year, the ability to choose one type of home over another will become unattainable for many home buyers in 2021 and beyond. The apartment certainly needs to be made more attractive as pricing will be an even bigger factor in where people live in Denver. “
Keep Westword Free … Since we started Westword, it has been defined as the free, independent voice of Denver, and we want to keep it that way. We offer our readers free access to concise coverage of local news, food and culture. Produce stories on everything from political scandals to the hottest new bands with bold reporting, stylish writing, and staff everything from the Society of Professional Journalists’ Sigma Delta Chi Feature Writing Award to the Casey Medal for the Deservable Journalism have won. Given that the existence of local journalism amid siege and setbacks has a greater impact on advertising revenue, it is more important than ever for us to raise support for funding our local journalism. You can help by joining our I Support membership program which allows us to continue to cover Denver without paywalls.
Michael Roberts has been writing for Westword since October 1990 and has worked as a music editor and media columnist. It currently covers everything from breaking news and politics to sports and stories that defy categorization.