DENVER — Homes in the Denver metro housing market continue to fly off the market as March begins, according to the latest report from the Denver Metro Association of Realtors (DMAR).
Speed continues to be an important factor for potential buyers facing heavy competition, with homes lasting 23 days on average, and just five median days, on Multiple List Service (MLS) listings.
Some listings are seeing over 100 showings in one weekend and are receiving more than 20 offers. DMAR recommends buyers should be prepared to go up to 20% over the list price if they want a home.
Overall, the residential real estate market has experienced a massive drop in active listings at months end at 2,024, a 58.14% decrease compared to February 2020. Over the same period, the average closing price increased 19.44% to $553,774, as the median price increased nearly 18.75% to $475,000.
There were 3,641 closed properties in February, a 3.7% increase that was fueled by a 16.29% increase in attached property closings, compared to the same time period in 2020.
The increased demand for attached properties pushed the averaging closing price up to $401,522, the first time the attached market has topped $400,000.
Meanwhile, closings for detached properties decreased 1.8% from February 2020.
Properties are frequently going over asking price and DMAR says the use of appraisal gap coverage waivers, where a buyer agrees to cover any difference between the appraisal value and the offer price, continues to rise.
The demand is so great, DMAR Market Trends Committee Director and local Realtor Andrew Abrams recalls submitting two separate offers that were $90,000 and $101,000 above the asking price that ultimately did not win.
“Seasonality, vaccines and interest rates will be a few of the best indicators," Abrams said when asked what it would take to get to a more normalized market. "As more of the population gets vaccinated, we may see increased listings throughout the summertime. Most importantly, if interest rates start to increase, that may decrease buyer demand changing the quantity of multi-offer situations."
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