April Market Update
The Denver market continues to race forward into spring. Inventory in April was up 35.03% over March, but that still made for the lowest April inventory on record. 6,699 listings hit the market in April, but by the month’s end, only 2,594 listings were listed as active. Almost all inventory is moving at a record pace. The average days on market has dropped to 13 days, but if we measure the mean days on the market, that number drops to 4.
We’ve seen concentrated demand for detached properties since the beginning of the pandemic and we are now starting to see attached units join in the spotlight. Attached units appreciated 7.3% month over month and detached units appreciated 4.28% month over month. We expect demand for detached units to remain high, but this is a sign that attached property demand is ramping up. It is also important to put these numbers into context. What we considered previously as a booming real estate market in Denver, experienced around 10% appreciation year over year and these numbers are just month over month.
Demand is a significant influence on home values right now, but not the only factor. Rising construction costs continue to limit new home construction. The cost of lumber has increased almost fourfold in the past year. Interest rates are also remaining low, allowing buyers to maximize their purchasing power and go above asking prices.
We traditionally see a rise in inventory starting in April and climbing until it reaches its peak in August or September. We expect this to be true this year due especially to the increased vaccinations and the lifting of COVID restrictions. We also expect this inventory to move quickly. In this competitive market, it is critical to have the right agent working for you. Creative, experienced agents are able to adapt quickly in a changing market.