DENVER – Denver home prices rose to a new record high in April, according to the latest data from the Denver Metro Association of Realtors.
The average sale price of all residential properties -- single-family homes and condos -- was $439,161. That represents an increase of 3.41 percent from March and 10.53 percent year-over-year.
The median sale price, which isn’t skewed as much by the most expensive homes in the market, was up 3.09 percent to $383,500.
Single-family homes made up the overwhelming majority of property listings, though condos had lower overall prices, with a median sale value of $270,000.
Continually rising home prices are of concern to DMAR’s Market Trends Committee, especially as increases outpace wage growth.
“The price of housing is on a higher trajectory than wages, and the affordability gap in the middle is getting wider,” DMAR Market Trends Committee Chairman Steve Danyliw said. “Is this sustainable? In my opinion, no. A healthy market needs a good balance of buyers and sellers combined with modest price growth.”
The DMAR report has some good news on the inventory front: The Denver housing market has made up some ground following a record low in active listings in February . April saw more than 5,300 active listings compared to only 3,800 in February. However, April’s inventory was still far below the historical average of 15,710.
With inventory so low and competition for available properties so high, DMAR said some buyers are choosing to seek out newly-built homes in an effort to avoid bidding wars and new developments are seeing huge responses when they enter the market.
Though condo construction once made up 25 of residential development in the Denver area, it is now less than 4 percent and the DMAR report expressed hope that the construction defects law making its way through the legislature could revitalize condo development and relieve some of the pressure in the real estate market.