An $850,000 Home In Littleton Just Sold for $1.1 Million

How High Are Bidding Wars Pushing Up Home Prices?

This is a reprise of my article on April 22nd, when I took a snapshot of closed listings on Friday, April 16th.  This week I did the same analysis, and the day I chose was last Thursday, May 13th, to see how the bidding wars have evolved in just the last four weeks. The source both times was REcolorado.com, Denver’s MLS.

As I did in April, I limited my analysis to sales within a 15-mile radius of downtown Denver. That takes in an area from Broomfield to Highlands Ranch and from Golden to Aurora. It does not include the City of Boulder.

I limited my search to homes, condos and townhouses that were on the MLS at least one day and not more than 6 days before going under contract. Those are the homes with bidding wars. I divided the results into homes which sold up to $500,000 and those that sold for more.

On May 13th there were 44 closings up to $500,000. The median home sold for 8.4% over its asking price. On April 16th, there were 48 closings, but the median home sold for “only” 4.7% over its asking price. The highest ratio this time was 15.7% for a home in southwest Denver that sold in 4 days.

There were 56 homes that closed on May 13th for more than $500,000. The median home in that group sold for 8.1% over its listing price.  On April 16th there were 68 such closings, and the median home sold for 8.3% over asking price, so little change there, but the highest overbid in this group on May 13th was 29.4% over listing for an $850,000 home in Littleton’s Sundown Ridge, which sold in 2 days for $1.1 million.  On April 16th, the highest overbid was “only” 18.8% over asking price for a home in Westminster. On May 13th, there were four homes with an overbid higher than that.

To have a statistically significant number of closings over $1 million, I analyzed the closings over a longer period — May 1-15. The median closing for those high-end homes was 6% over listing price. The highest was for a 1991 home in Denver’s Hyde Park at Polo Club subdivision, which was listed at $1,575,000 and sold in 6 days for $2,225,000, 41.3% over listing price.  In the first half of April, there were only 68 closings over $1 million, and the highest overbid was 24.9% over listing price. This time there were six closings with an overbid higher than that.

In my April analysis I predicted that the overbids would get even more intense, and that has proven to be the case. I’ll keep up this analysis in coming months. Stay tuned.

Author: Golden Real Estate, Inc.

Golden Real Estate is a prominent member of the Denver/Jefferson County real estate scene. Based in Golden, we service both Denver and Jeffco, representing both buyers and sellers. We're well known for Broker Jim Smith's weekly "Real Estate Today" column published in the Denver and Jeffco editions of the Denver Post's YourHub section each Thursday. The column also appears in several weekly newspapers and is archived at www.JimSmithColumns.com. We have nine agents, all of whom are Realtors and EcoBrokers. Our office is Net Zero Energy since December 2017, and several of us drive electrics cars. Known for our sustainable practices, we accept polystyrene (aka "Styrofoam") for recycling, keeping 200 cubic yards per year out of area landfills.

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