In February, the average price for a detached single family (DSF) home reached an all-time high at just under the half-million dollar mark, and the average price for attached single family (ASF) was just slightly off the record high reached in January. While inventory rose 10 percent compared to the previous month, the market remained fast:
• 54.1 percent of DSF and 58.3 percent of ASF homes were under contract in 7 days or less;
• Days on market for DSF and ASF dropped to 31 days and 27 days, respectively; and
• 61.5 percent of closed homes sold at or above asking price.
While weakening affordability is a growing concern, for those wondering if it is better to buy or rent at this time, buying a home is likely to result in greater savings. For example, based on a $1,500 monthly mortgage payment, if prices appreciate by just 4 percent, one will save more money than renting within three years after buying and nearly $150,000 by remaining in the home for 10 years. With a $2,000 monthly mortgage, the savings grows to more than $200,000 after 10 years.*
If you need any advice or assistance navigating our real estate market, contact me today at 303.710.5817 or firstname.lastname@example.org. I am never too busy for your referrals.
* Assumes a 30-year mortgage term at 4.5 percent, 10 percent down payment, 4 percent buying costs, 1 percent property tax, monthly costs (maintenance, insurance and utilities), 6 percent closing costs and renting costs including insurance, deposit and 2 percent rent appreciation.
This update is based on information from REColorado®, Inc. provided by Land Title for the period of Feb. 1, 2018, through Feb. 28, 2018, for Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert and Jefferson Counties. Note: This representation is based in whole or in part on content supplied by REColorado®, Inc. REColorado®, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market.