Business

New Average Metro Denver Home Price Finally Falls, but Not by Much

This three-bedroom, three-bathroom, 2,088-square-foot home at 404 South Grant Street is listed at $700,000, just over the new average home price in metro Denver.
This three-bedroom, three-bathroom, 2,088-square-foot home at 404 South Grant Street is listed at $700,000, just over the new average home price in metro Denver. Google Maps
The August market trends report just released by the Denver Metro Association of Realtors is the first in months not to reveal a new record high average price for a detached home in the Mile High area. But the average-price decline is modest, and while some statistics offer hope to buyers who haven't inherited their own bank, others show that not much has changed.

An example: The average price for a detached home in metro Denver in July, the most recent month for which data is available, came in at $699,795, a 3.51 percent dip from the June average of $725,278 — a figure adjusted downward from the $728,385 that DMAR initially reported last month. But realtors such as Golden Real Estate owner Jim Smith consider the median price (the precise price midpoint of properties for sale) to be a more accurate indication of the market. And the July median of $600,000 is unchanged from June's median.

The cost spikes in metro Denver during 2021 have largely been driven by demand outstripping supply, and that phenomenon isn't over. The number of new listings in July is calculated at 5,125, a 9.42 percent decline from the 5,658 put on the market in June. But the 2,879 active listings at the end of July are a 34.67 percent increase over the 2,137 that lingered at June's close.

A graphic from the DMAR report, which runs from the start of 2008 to July 2021, puts these factors in historic perspective. The yellow line corresponds to active listings at the end of each month, while the blue line shows sales that closed over the same periods:

The number of closings in July — 4,123 — was also down. slipping by 12.13 percent from the 4,692 in June. But that hasn't prevented the most attractive properties from being snapped up quickly.

The average number of days in July that detached homes in metro Denver spent on the MLS, or multiple listing service, was eight — the same span as in June. The median number of MLS days was also the same: four in July, four in June.

And bidding wars aren't a thing of the past, even though the new statistics represent modest easing. The July closing average was 104.56 percent of list price, whereas June's stood at 105.90. That's just a 1.27 percent month-over-month slide.

Here's how realtor and DMAR market trends committee member Jenny Usaj considers the current situation: "Buyers are facing harder decisions by the day. If you do not go higher, can you sleep at night? If you pay over the list price, can you sleep at night? Historical financial data is the basis of many real estate decisions, but so are feelings in this market, and feelings cannot be calculated."

Click to read the Denver Metro Association of Realtors' August market trends report.
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Michael Roberts has written for Westword since October 1990, serving stints as music editor and media columnist. He currently covers everything from breaking news and politics to sports and stories that defy categorization.
Contact: Michael Roberts