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DENVER – The number of homes listed for sale in metro Denver rose by nearly 25 percent in May but the increase in inventory didn’t do anything to curtail the upward trend in home prices.
The median price of homes sold in the metro area last month was $420,000, according to the latest data from the Denver Metro Association of Realtors. That’s less than half a percent higher than April’s median sold price but is nearly 10 percent higher than May 2017.
At the end of the month, there was a total of 6,437 homes listed for sale, which is 24.75 percent higher than the previous month and 9.19 percent higher than the same time last year. Despite the increase, inventory remains much lower than the historical average of more than 16,000 listings.
The number of homes sold also was up compared to the previous month but that number was down year-over-year.
With prices continuing to climb and inventory remaining at historically low levels, many people have expressed concern that a big turnaround is coming. But Realtor and Chair of DMAR’s Market Trends Committee Steve Danyliw said he doesn’t think Denver’s housing market is headed for a bubble like the one we saw before the financial crisis of the 2000s.
"Let’s compare the last bubble of 2007-2008 to current conditions. Looking at the supply side of the equation, inventory in May of 2007 was 29,110 compared to 6,437 this May. Demand has remained relatively unchanged. Overall economic conditions like employment, job growth and net migration are stronger today than 2007-2008,” Danyliw said. “I don’t see a bubble any time soon, but keep an eye on inventory.”
The metro area’s luxury real estate market continues to thrive with the number of homes selling for $1 million or more up nearly 22 percent year-over-year.
The most expensive home sold in the metro area last month was a six-bedroom, 9,206-square-foot single-family home in Cherry Hills Village that went for $4,400,000.