Home prices in metro Denver climb

The trend lately in metro Denver is for increased home prices and January was no different. Though the number of homes sold in January decreased year over year the median sales prices increased over 16% to $210,000.  

The numbers provided by Metrolist also indicate an increase in the median condo prices of 15% year over year to $130,500.

The increase in median prices is due to the mix of current buyers and the type of inventory available on the market. Basically there is not an abundance of inventory available that matches what first time home buyers are seeking.

While median home prices have climbed, the number of homes available in inventory has declined. This time last year there were 19,748 available and this year it is down 9.9% to 17,785.

The trend over the last three years has been declining inventory levels. Decreased inventory leads to greater demand upon that inventory and puts upward pressure on pricing when discussing the homes available for first time home buyers.

This trend will continue over the next few months with the home buyer tax credit now set to expire the end of April. Those interested in buying a home understand that they should have something under contract by the end of March.