In February 2018, the average home price in the Denver metropolitan area surpassed $500,000, up 11.8 percent year-over-year and up 2.5 percent from January 2018.
The Denver Metro Association of Realtors says that this is the first time that the average price of a single-family home sold has gone over $500,000. The Denver Post explained that as so few affordable homes are available, the increased demand and competition may drive up prices "to the point of financial exhaustion." Broker Heather Dos Santos says, “Everyone is afraid if they don’t buy something now, next year it will be worse. That could be causing it, the sense that we need to buy now."
That rapid move in rates, however, didn’t dampen home price increases, probably because many buyers had locked in lower rates, something lenders will offer for 30 to 90 days out. If those buyers don’t find a property before the rate lock expires, they will be pushed back into a market charging around 4.5 percent. In that regard, the housing market could be heating up before it cools down.
