Denver Metro | Quarter 2, 2021
At the halfway mark for the year, the Denver Metro real estate market, while still strong and performing incredibly well, is experiencing a shift that may offer some reprieve for exhausted buyers struggling to keep up with the fast-moving market. With more consumers seeking homes that offer the unique balance of urban amenities and entertainment options and access to natural spaces, Denver Metro’s communities have remained a popular destination to buy and sell homes. However, the onset of summer has inspired many to finally take a vacation or travel to see loved ones, resulting in a slight decline in showing activity this season.
Looking at the number of showings for the month of June, it appears that overall showings declined by -0.1%, according to data from the Denver Metro Market Review for the month of June, a monthly report compiled by Megan Aller of First American Title. The average number of showings per listing, which was 13.9 showings in June, dipped -19.2% in a month-over-month comparison.
This change of pace provides buyers with more opportunities to purchase homes in Denver Metro since there are less people in town placing competing offers on the limited number of available homes. Inventory in Denver Metro remains low, with the number of new listing coming onto the market decreasing by 6.9%, according to LIV Sotheby’s International Realty’s (LIV SIR) Mid-Year Micro Market Report which compares real estate data through June of this year compared to the same frame in 2020.
While the slight slowing of the market is good news for buyers, sellers should not worry. Home prices in Denver Metro continue to appreciate, growing by 24.8% to reach and average price of $650,278 for single family homes and rising by 16.1% to reach an average price of $437,130 for attached residences through Q2 of 2021 compared to the same period in 2020. This increase in home prices has created a significant 37.8% boost in overall sales volume, totaling $27,718,287,062, for the six county Denver Metro area.
Several Denver Metro neighborhoods continue to see increased demand from buyers resulting in an escalation in the number of listings sold and average sales prices at the halfway mark for 2021.
LIV SIR has seen a resurgence in interest in communities close to the city, such as Uptown, RiNo, Golden Triangle, and Cheeseman Park, which all experienced increases in the number of properties sold by over 100%. The Downtown condominium market has also gained momentum, with a 93.8% rise in condominium sales through June of this year. Outside of the city, the Country Club neighborhood saw one of the most significant improvments in home sales, growing from four homes sold through Q2 of 2020 to 11 homes sold so far this year – a 400% increase.
Home values have appreciated in many neighborhoods across the Denver Metro area, such as the beloved neighborhood of Bonnie Brae / Belcaro, where average home prices rose by 60.5%, reaching $1,722,391. In the City of Denver, average prices for all property types appreciated by 21.5%, bringing the average price to $634,217. Home prices in Capitol Hill, while still rising, are do so more slowly – appreciating by 3% to bring the average price to $384,521.
As more buyers eagerly plan their return to a more familiar way of living, urban communities at the center of the popular restaurant, art, and entertainment scenes have seen a decrease in the average days on market. For example, RiNo has seen a 17.9% decrease in time spent on the market for all property types. However, suburbs outside of the city still prove to be the more competitive markets for homebuyers. In Greenwood Village East, homes spent an average of just 21 days on the market through June, which is -62.5% less than the same period in 2020.
While the Denver Metro real estate market continues to thrive through the first half of the year, the slight shift in market conditions and activity levels may create additional opportunities for both buyers and sellers to reach their real estate and lifestyle goals.
This Colorado Micro Market Report includes real estate data statistics for the following neighborhoods (single family, unless otherwise indicated): Baker, Belmar, Berkeley, Bonnie Brae, Belcaro, Bow Mar, Capitol Hill, Cheesman Park, Cherry Creek, Cherry Hills Village, City Park, Columbine Valley, Congress Park, Cory-Merrill, Columbine Valley, Country Club, Crestmoor Park, Downtown (condos), Golden Triangle, Greenwood Village, Hale Mayfair, Heritage Greens, Highlands, Hilltop, Homestead, Jefferson Park, Ken-Caryl North Ranch, Ken-Caryl Valley, Lakewood, LoHi, Lowry, Montclair, Observatory Park, Park Hill, Platt Park, Polo Reserve, RiNo, Sloan’s Lake, Southglenn, Southern Hills, Southmoor Park, Stapleton, Sunnyside, Tallyn’s Reach, Uptown, Washington Park East, Washington Park West, and West Highlands.