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Average home price in Denver hits a new record of $606,000

Realtor: "There are no good deals left"
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Posted at 9:15 AM, Sep 03, 2020
and last updated 2020-09-03 11:15:10-04

DENVER — Denver has gone from a sellers market to an "extreme" sellers market, according to the Denver Metro Association of Realtors' latest trends report.

The September report released Thursday shows that August 2020 saw the most home sales of any August on record, yet there were 40% fewer homes on the market than August 2019. Low inventory sent the average single-family home price to a new record high of $606,330.

When the average price is that high, that means there's not a lot of houses below that price left, said Jill Schafer a realtor with the Denver Metro Association of Realtors.

Schafer said she has struggled to find her clients something they like at the price they want to pay.

"There are no good deals left out there," Schafer said.

Schafer said buyers are paying above asking price, and making concessions like waiving inspections and allowing sellers to stay in their homes longer if they need more time to move.

"(Buyers) have to be patient, have to trust their agent when the agent says, 'Go in at this price,' 'Give up these things,' if you really want this house," she said.

Mike Hills, a broker with Atlas Real Estate and Property Management in Denver, said it's not all bad news for buyers. Interest rates are low, and people are still moving to Denver, so those who can afford to get into the market will likely see home values continue to rise.

"Are you going to pay a little more than you want to? Yes, but buy for the long term and you will be OK," Hills said.

Hills said the pandemic has also changed what people are looking for in a home, leading some people to leave urban environments.

"If you live in a high rise apartment, but you're not allowed to use the gym, you’re not allowed to use the pool, the bar, and the social events aren’t happening because of COVID-19, then why do you live in these big high rises?" Hills said.

According to the report, those who can afford to buy a home are looking for features like a home office, space for kids to do remote learning, and a yard.