D
enver's housing market is experiencing a surge in high-priced listings, with two-bedroom homes hitting the market for $500,000. Active listings have increased by 71% year-over-year, with 11,000 new listings added by the end of April, according to the Denver Metro Associations of Realtors (DMAR). Compass Broker David Schlichter notes that home affordability is a challenge in Denver, as it is across the country.

    The average closing price for homes in Denver is around $607,000. However, some homes are being listed at surprisingly high prices, such as a two-bedroom property on Arapahoe Street priced at $598,999. The home has only one bathroom and 1,165 square feet of living space, but its location is touted as a major selling point.

    Despite the high number of listings, buyer demand remains low, with Realtors reporting that buyers are not feeling pressured to make quick decisions. Corcoran managing broker John Keene attributes this to the uncertainty surrounding the economy and interest rates. He notes that many buyers are hesitant to invest in homes when they don't know if they'll have a job in the future.

    A nine percent drop in home prices is expected within the next year, according to Reventure, a real estate data app. However, this could be good news for buyers who are actively looking to purchase a home, as they may have more power to negotiate lower prices and find their dream homes with the excess of options available.

    The migration of Californians to Denver over the last decade has driven up home prices, but some neighborhoods and suburbs are performing better than others. Keene advises homebuyers not to hold out on hope that prices will drop to 2008 levels, but rather to focus on finding a home that fits their budget. He suggests that homeowners consider mortgage payments as a percentage of their income, rather than the price tag itself.