3 ways COVID drastically changed Denver's housing market
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The pandemic's lasting impact on Denver is perhaps most evident in its housing market.
Why it matters: Sky-high home prices, elevated mortgage rates and years of tight supply have pushed homeownership out of reach for many.
- Here are three ways our housing market transformed in the past five years.
1. Home prices skyrocketed
Cheap borrowing costs and remote work unleashed a homebuying frenzy early in the pandemic, and sent prices soaring.
By the numbers: The median Colorado home price in January was $607,000, up 48% from $410,000 five years ago, according to Redfin.
- Home prices in metro Denver are up about 35% since February 2020, per Zillow data.
- Homeowners sit on a mountain of wealth.
2. Inventory dried up
Those who scored ultra-low mortgage rates during the pandemic are hesitant to sell, locking up supply.
Yes, but: That's starting to change as homebuyers adjust to higher rates.
- Roughly 83% of U.S. homeowners with mortgages have a rate below 6%, down from around 88% a year ago, according to a recent Redfin analysis.
- And in 15 of the 50 largest metro areas — including Denver — inventory in February topped pre-pandemic norms, per Realtor.com.
3. The rise of the $1 million-plus home
Denver homes listed for over $1 million have more than doubled since 2020, going from 3,156 listings five years ago to 6,274 last year, Redfin data shows.
Go deeper: How the pandemic transformed the U.S. housing market in 5 years