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Denver metro home prices hit record $606,330 as inventory plummets

Inventory in the 11 county Denver metro area dropped 41.22% year-over-year

DENVER, Colorado — The latest report from the Denver Metro Association of Realtors (DMAR) shows the average price of a detached home in the 11-county metro area hit a record $606,330 in August. 

Demand is extremely high as potential buyers look to take advantage of low interest rates.

The report shows that 5,959 homes were sold in August 2020, more than any other August on record. But the inventory was also lower than any previous August, dropping 41.22% year-over-year.

“I call it the Vicious Circle," said Jill Schafer, trends committee chair for DMAR. "I think that people would like to move and perhaps change school areas or get to a bigger home or downsize. But when they look what's out there, they can't find anything they can get excited about or find anything at all. 

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"So they opted not to go anywhere and then they put their houses on the market." 

Bottom line, there are not many deals out there. Buyers should expect to pay full price -- if not more ... and that’s if they don’t get outbid.

“Buyers need to be patient," Schafer said. "They need to have someone who's experienced writing offers in this kind of market and they need to know that they're going to be putting all their cards out on the table that they are not going to really be able to negotiate. 

"In fact, they may have to make compromises. They may have to choose a different neighborhood than they wanted or a smaller home than they wanted.”

Read the full report here: https://bit.ly/32Uwqma

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