Denver’s residential real estate market cooled in August, as is typical for the end of the summer. The cooling off was relatively slight, however. According to REcolorado, active listings of single-family homes rose 2% in August over July, the average sold price dropped 1%, and the average days on the market rose from 19 to 21 days. According to Realtor.com, Denver dropped from the second to the third hottest residential real estate market in August, behind San Francisco and Dallas-Fort Worth.
While the hot market has been tough for homebuyers in Denver, buyers have been faring better than renters. The Denver Post, citing a recent study from Zillow, stated that rent payments in the Denver area currently average 34.3% of a person’s median income, up from an average of 23.4% between 1985 and 2000. In contrast, mortgage payments average 21.1% of median income. This mortgage figure is based on a metro Denver buyer earning the median income, purchasing the median-priced home, putting 20% down, and borrowing the rest at current rates on a 30-year mortgage.