Updated: Jul 22
Here are the latest stats from our summer housing market.
Now that we’re six months into the year, everyone knows that the housing market has been really hot. But how hot are we talking?
Well, in Denver, the median sales price is $600,000 and the average price point is $728,000. With the median and average prices being so different, we’re seeing a lot of luxury homes selling. In fact, in June 2021, we had almost $1 billion in luxury home sales. We have more homes priced at or above $4.9 million than we’ve ever had before.
What does that mean for most of us in the market? We’re experiencing a very normal seasonal slowdown here in Denver. To give you an idea about the numbers, as of the end of June this year, there were 3,122 homes for sale in the market—that’s 50% more than we had in May but 50% less than we had in June of last year. The most we’ve ever had in June was over 31,000 homes for sale. So when people ask if the market is slowing down, I tell them it is, but only by a very small amount. The market is still very, very hot, however.
Some of the market numbers that sound a bit crazy, like the fact that home prices have gone up by 28%, just reflect that there are homes on the market at higher price points. Going back to what I said about there being almost $1 billion in luxury sales, those sales included any home priced at or above $1 million. In Denver, $1 million homes aren’t really considered luxury anymore, but that’s still how we look at our stats. Luxury homes are priced at or above the range between $1.75 million and $2 million.
The entry-level market is also booming. At one point, there were just 14 homes on the market in the entire Denver metro area, and there were single-family homes priced at or under $375,000. Not too many years ago, there might have been 2,000 homes on the market. About 50% of all home sales occur between $500,000 and $750,000, and that’s the new normal for our area.
Now is the best time in the history of Denver real estate to sell a property valued at over $1.5 million.
In other news, vacation home sales are up 50% year over year, while residential home sales are up 20%. Now, much of that 20% increase is due to people upsizing because they’re working from home. It’s the same for vacation sales; many people can now work remotely, so many are purchasing vacation properties as residential homes.
The largest group of people moving into the Denver metro area are people from New York City. Roughly 10 out of 10,000 new people on LinkedIn in Denver are coming in from New York. The next biggest group is from the San Francisco Bay area, followed by Chicago, Los Angeles, and Orange County/Southern California.
One reason behind this migration to our area has to do with the taxes in Colorado being favorable compared to other states. For example, the property tax in Chicago is over 2.3%, whereas in Denver, the average property tax is 0.7% or 0.8%, depending on the community.
All in all, the market is still doing fantastic. Affordability is a little bit of a challenge, but thankfully, interest rates are still incredibly low and will stay that way through the end of the year. If you have a luxury home and have been thinking of downsizing, now is the best time in the history of Denver real estate to sell a property valued at over $1.5 million.
If you have any questions or would like more information about what’s going on in the market, don’t hesitate to reach out to us. Hope to hear from you soon!