Denver Real Estate Market Update | April 2021
“What’s my home worth?” This is one of my favorite topics to discuss with homeowners. After all, we all think our homes are worth more than they are…right? Well, not so fast!
Since April 2020, the Denver real estate market has been on fire. Historically low interest rates and COVID-19 came together to create a massive wave of new buyers. The latest stats released by the Denver Metro Association of REALTORS® (DMAR) show that the average price of a single-family home reached $674,990 at the end of March 2021—up a whopping 19.3 percent in just one year! Moreover, in a single month (February to March), we saw the average price of a single-family home rise 6.72 percent.
We’ve all heard the stories from neighbors: “The house down the street sold in a bidding war in less than 24 hours!” Nowadays, buyers are competing against each other and perpetuating this frenzied market. Add all of this up and we see that values in almost every neighborhood have jumped a full price point. What used to be a $400K neighborhood is now likely a $500K neighborhood and so on.
So what is your home worth? The main factors that set current market value are the following: 1) most recent comparable home sales with similar location, and 2) layout. Typically, when researching comparables, real estate agents would look back over the past year of sales, but because the market has appreciated so quickly, your home’s true current value would be more accurately reflected in the last three months of sales. As these record-setting sales close, Metro Denver should begin to see the dust settle and find a more balanced market.
An independent appraiser would charge somewhere between $300 and $500 to conduct an appraisal on your home. The Steller Group’s listing agents, however, will provide a Broker Opinion of Value at no charge to you. If you have questions about your current home value or how to compete in this incredible market, give us a call. 720.593.9355 or [email protected].