For the last year, the narrative surrounding Denver Metro’s real estate market has told a story of strength, resilience, and intensifying demand. While all of that continues to ring true, as society makes its return to a state of “normal,” shifts in consumer behavior are creating more opportunities for both buyers and sellers to find success in the Denver Metro market.
Historically, the Denver Metro market has seen a slight slowdown in showing activity toward the end of the summer. However, this year the decrease has arrived early now that consumers can finally get out, take a vacation and visit loved ones. With more people prioritizing enjoying the summer season over actively shopping for homes, those who are touring listings and making offers are likely to benefit from the decline in competition.
While the slight slowing of the market is good news for buyers, sellers have had the advantage of an incredibly hot real estate market through the first half of the year. According to data from LIV Sotheby’s International Realty’s (LIV SIR) Q2 Micro Market Report, home prices in Denver Metro continue to appreciate. In a comparison of January through June of 2021 to the same time frame last year, single family home prices rose by 24.8% to reach an average price of $650,278. Attached residence prices rose by 16.1%, which brought the average price to $437,130.
Home values have appreciated in many individual neighborhoods across the Denver Metro area as well, such as the beloved neighborhood of Bonnie Brae / Belcaro, where average home prices rose by 60.5%, reaching $1,722,391. In the City of Denver, average prices for all property types appreciated by 21.5%, bringing the average price to $634,217. Home prices in Capitol Hill, while still rising, do so more slowly – appreciating by 3% to bring the average price to $384,521.
Looking at the number of homes sold in specific neighborhoods, it is clear that consumers are beginning to return to more their typical, pre-pandemic buying behaviors. For example, LIV SIR has seen a resurgence in interest in communities close to the city, such as Uptown, RiNo, Golden Triangle, and Cheeseman Park, which all experienced increases in the number of properties sold by over 100%. The Downtown condominium market has also gained momentum, with a 93.8% rise in condominium sales through June of this year. Outside of the city, the Country Club neighborhood saw one of the most significant improvements in home sales, growing from four homes sold through Q2 of 2020 to 11 homes sold so far this year – a 400% increase.
The luxury real estate market has seen even more impressive increases in activity at the halfway mark for the year. Overall, the six-county Denver Metro area has experienced an impressive 151.9% increase in the number of luxury homes sold through June of 2021 compared to the same period in 2020, with 2,217 luxury homes sold. Additionally, the average sale price of those luxury homes rose by 8.3%, bringing the average price for luxury homes in the community to $1,610,835. These increases resulted in a 172.7% rise in the total dollar volume sold, totaling $3,571,221,847.
The strength of the market was seen throughout the individual neighborhoods within Denver Metro as well. In Greenwood Village West, properties on more than an acre saw an impressive 450% increase in the number of luxury homes sold, growing from two homes sold through Q2 of 2020 to 11 homes sold so far this year. The Country Club neighborhood and the City of Denver also saw notable rises in luxury home sales, increasing by 400% and 155.9% respectively.
As more homebuyers compete for luxury real estate in Denver Metro, an upward trend in home prices has been observed. The Bow Mar and Bow Mar South neighborhoods, which are popular due to their access to Bowles Lake and the activities and amenities that come with it, saw a 60.6% increase in sale prices for luxury homes. From January to June of this year, the average sold price for luxury homes in this neighborhood was $2,522,833.
This summer may be one of the best times for buyers and sellers to enter the real estate market in Denver Metro. To learn more about how your neighborhood performed through June of this year, read the full Q2 Micro Market Report by visiting elevatedrealty.co or calling 303.887-2610