Average price of single-family homes in Denver metro area surpasses $500,000 for first time

DENVER -- The average price of single-family homes in the Denver metro area climbed past $500,000 for the first time in February, according to a report from the Denver Metro Association of Realtors.

The March report found the average price was $502,986, an 11.78 percent increase from February 2017.

The average price for all residential properties -- single-family detached homes and condominiums -- was $400,000, up 12.04 percent from February 2017.

RELATED: Denver Metro Association of Realtors March report

“This may represent a psychological barrier for some homebuyers wishing to enter the market,” said Steve Danyliw, chairman of the DMAR Market Trends Committee.

While continued price increases will continue to squeeze the housing market, there was some good news with an increase in inventory.

The number of active listings in February increased to 4,084, up 5.56 percent from January and 5.31 percent higher than February 2017.

Condominiums saw an 11.35 percent increase from February 2017. Single-family homes were up 3.32 percent.

"This is good news as we normally see a small seasonal decrease this time of year," Danyliw said. "These new listings may be 'fence-sitters' jumping in as concerns of increasing interest rates mount."

Still, the inventory is still quite low. The historical average number of active listings for February is more than 14,000.