Every Spring, Denver experiences a boom in home sales, and this year is no different. Single-family homes increased in value tremendously last month as buyers and sellers raced to make deals. In February, average home prices were in excess of $500,000, and they continued with a substantial increase of 3.8 percent the following month, up to $522,227. In fact, single-family real estate has increased by 11.7 percent since New Year's Day.
As for homes that actually sold in March, the average sales price was $440,875. This figure has risen by 8.5 percent compared to last year. This may be surprising, considering the rising interest rates on home loans, which have served to increase the average payments borrowers are making on their mortgages.
According to the chairman of the DMAR Market Trends Committee, "The anticipated cooling effect of unaffordability has yet to materialize in the figures." He further claimed, "All in all, there are good numbers across the board, with the same story line of low inventory and prices moving higher."
In other interesting developments, sales of single-family luxury residences in excess of $1 million increased by 52 percent in March as compared with the previous month. So far, 381 homes in excess of $1 million have sold this year. Two of these residences were a $4.9 million Denver home and a $5.5 million Boulder home.
Are you ready to make a sale or purchase in the Denver-area real estate market? Considering the considerable increase in home values, it seems like a lot of other people may be having the same idea. Before you buy or sell a home, however, make certain you understand all the legal implications of the deal.
Source: The Denver Post, "Spring home-selling season starts with a bang in metro Denver," Aldo Svaldi, April 04, 2018