Denver Real Estate Market May Update
Here’s your Denver real estate market update for May of 2021.
Today I wanted to talk about not only what we saw in the April market but also what we've seen in 2021 up until now. The overarching theme continues to be a really strong demand on the buying side. A big part of that is fueled by these low interest rates, and it's creating historically low inventory numbers. 40 years ago we saw the peak 30-year fixed mortgage interest rate at 18.63%; it's sitting at 3.04% right now.
Inventory is down 62% year over year. Across all 11 counties that make up the Denver metro area, there were 2,549 properties available at the end of April. That was the lowest number of active properties on the market of any recorded April.
We have a ton of demand and not a whole lot of supply.
NPR reported that 23% of the country is now vaccinated. We all want to continue to be cautious though. Also, since the beginning of the pandemic, there has been almost a 400% increase in the cost of lumber. It’s increasing new home building costs dramatically.
We have a ton of demand and not a whole lot of supply—it’s going to push pricing up. We see that now with an increase in appreciation of over 24% year over year, which is nearly unheard of. In addition, properties are moving very quickly. Earlier this year, properties were taking over 20 days to sell; now we're at an average of 13 days.
If you have any real estate questions, don’t hesitate to reach out to us. We’re here to help you. Have a great day.