Homes sales in metro Denver surged in July as pent-up demand and a lack of choices pushed buyers to make a deal.
A record 6,664 homes sold in July, surpassing the previous monthly high set in June 2017, according to the Denver Metro Association of Realtors. The average price rose to $601,863, a 7.68 percent increase from June, the association said in a report today.
“We predicted the record home sales, but I don’t know anyone who predicted prices would jump so much in one month,” Jill Schafer, who chairs the association’s trends committee, wrote in the report.
The frenzied activity is somewhat counterintuitive given the economic uncertainty and skyrocketing unemployment brought on by the coronavirus pandemic. The market for rental housing could suffer, but low interest rates and a lack of inventory continue to lift prices for people that want to buy, according to Schafer.
The lack of homes for sale is lifting prices out of reach for some buyers, Schafer said. The number of active listings at the end of July was down 31 percent compared to a year ago, the report found. Schafer noted that’s leading to multiple offers and speedy sales.
The luxury segment — defined as homes priced at $1 million and above — continues to lag the overall market, the report found. Closed transactions in that price range fell about 1 percent from the same time last year, according to the report.
The market for single-family luxury homes stands to benefit if families are willing to pay up for larger spaces as more people work from home indefinitely, Schafer said.