The average price of a home in metro Denver increased to $390,067 in February, up from $326,958 in February 2014.
The increase of 19 percent year-over-year includes both single-family houses and condominiums, according to the latest data from the Denver Metro Association of Realtors.
Average prices were likely impacted by continued strong demand in the housing market, including the luxury market of homes priced at $1 million and above, 84 of which sold in January and February in the metro area, compared with 56 for the same period last year, a 50 percent increase.
Median home prices also increased, to $329,000 from $280,000, a 17 percent jump.
Demand in all price segments remains high, with millennials in particular entering the market, DMAR said. Interest rates hovering near March 2013 lows are also keeping buyers in the market.
“As year-over-year housing prices continue to increase, home affordability is going to become a greater issue as the entry point for first-time buyers grows higher and higher,” said Anthony Rael, chairman of DMAR’s Market Trends Committee. “The continuation of a strong job market in Colorado will hopefully offset the drag from an expected increase in mortgage rates this summer.”
Active listings of single-family homes and condos combined on the market dropped again in February, to 4,079 from 6,103, a 33 percent drop. Separately, the number of single-family homes on the market fell by 31 percent to 3,338 in February and the number of condos on the market fell by 41 percent to 741.
But the number of new listings increased for single-family homes and condos in February, by 2.7 percent from 3,004 in 2014 to 3,087 this year.
These new listings demonstrate increased willingness from sellers to put their homes on the market, which is a good sign for easing the inventory shortage, but it’s still not enough to bring prices back down.
“We’re seeing an impressive number of new home listings come on the market this year as sellers begin responding to consumer demand,” said Kirby Slunaker, president and CEO of REcolorado, the multiple-listing service formerly called Metrolist.
“Even with the increase in new listings, our historically-low inventory levels remain the biggest challenge facing the Denver-area housing market, as they are undoubtedly contributing to rising average home prices and reducing the amount of time homes are on the market,” Slunaker said.
Earlier this week, a report from Irvine, California-based CoreLogic showed that Colorado led the nation in home-price appreciation in January, with Denver’s appreciation reaching even higher than the state as a whole.