Not even a global pandemic can slow Denver’s home appreciation. For the past eight years, lack of homes for sale has fueled our meteoric rise in prices. The pandemic has further eroded our inventory. Below is a monthly comparison of the average of the past five years’ number of homes for sale to 2020’s number of homes for sale to date in Central Denver (click for map):
Demand was off to a strong start; then the pandemic forced us to Netflix in place for a month and closings dropped precipitously. Then with the “safer at home” orders, showing restrictions eased, properties began selling again, and making up for lost ground. Below is a monthly comparison of the average of the past five years’ number of homes sold to 2020’s number of homes sold to date.
Low supply and strong demand equal rising prices.
These trends certainly favor sellers, but it’s not all bad news for buyers. Last year this time, interest rates hovered around 3.8% compared to 3.0% now. The monthly 30-year fixed mortgage payment on a median priced home last year with 20% down was $2,423. This year at the higher median price, lower interest rate, and same percentage down, the monthly payment is $183 less at $2,240.