Patrons in metro Denver can nearly at all times rely on having a wider number of houses accessible because the climate warms up, however not this yr. The stock of houses and condos accessible on the market within the area continued to shrink final month, regardless of rising mortgage charges, in line with a month-to-month replace from the Denver Metro Affiliation of Realtors.
In a metro space with greater than 3.2 million individuals, just one,921 houses and condos have been accessible on the market on the finish of March, down 5.1% from February and 66.7% from a yr earlier. Final month’s stock decline was the biggest on document for a March, and the primary February to March decline the world has seen since 2014.
It got here regardless of a 26.7% bounce in new listings in comparison with February. Sellers confirmed up, solely to be overwhelmed by demand. A phrase to annoyed patrons who held out for the spring surge in stock: It isn’t occurring. As an alternative, house costs are surging, additional including to the sense of desperation some patrons really feel.
“Theoretically, this month’s report reveals that if a purchaser waited only one month to purchase a $500,000 property from the top of February to the top of March, they might have needed to pay $35,000 extra for that property,” stated Andrew Abrams, chairman of the DMAR Market Developments Committee and a Denver Realtor in feedback accompanying the report.
The median closing worth of a single-family bought rose 5.7% from February to $560,000 and it’s up 15.5% over the previous yr. The common closing worth reached $674,990, a 6.7% enhance from February and a 19.3% acquire from March of final yr. Each of these figures are all-time highs.
Median worth good points have been extra modest for condos and townhomes, up 4.6% month-over-month and 6.35% year-over-year to $353,000. The common closing worth rose 4.4% and eight.2% respectively to $416,775.
The variety of residential closings shot up 24% between February and March and is up 1.2% over the previous yr. Half of the single-family house listings final month went beneath contract inside 4 days, and acquired 104.1% of the itemizing worth, two different markers of how sizzling the housing market stays.
Rising rates of interest, which might cut back affordability and restrict demand, may begin to weigh extra on markets relying on how shortly they proceed to maneuver up. Charges on a 30-year mortgage began the yr at round 2.65% and at the moment are working nearer to three.2%, in line with FreddieMac.
“If rates of interest proceed to rise, we might even see a lower in patrons out there place resulting in a extra normalized market. The million-dollar query is when?” Abrams requested.