The Denver metro area has consistently averaged 13,531 active listings by the end of February since 1985. By the end of February 2021, there were only 2,024 properties up for sale, according to the Denver Post. These numbers show how hot the Denver market is, and homes are gone within a median of five days, compared to 15 days last year at this time. One real estate agent recalled a bid for $101,000 above the asking price, another for $90,000 above, and neither were accepted. The median closing price for a single-family home in Denver hit $530,000 last month, a 4.1% increase from January.
Condos and townhomes aren’t as popular, in part because the pandemic has instilled a desire among buyers for more space. But even there, February’s median closing price of $337,250 is up 12.8% on the year.
What might calm the frenzy of what observers considered an already overvalued market spinning off 20% plus annual home price gains? As more sellers get the COVID-19 vaccine, they might become more comfortable with listing their homes, which would boost supply, Abrams suggested. Higher interest rates could also force more buyers to the sidelines by reducing affordability, calming demand.