Inventory drops to historic lows as the average price of single-family detached and attached homes reaches record high.
In January, the Greater Denver Metro housing market again broke an all-time record, a new inventory low with only 2,316 total properties on the market, translating into an inventory shortage and opportunity for appreciation to accelerate.
Single-family detached properties hit a record average price of $629,159, while attached properties hit a record of $397,792. Single-family home sellers saw a 101.03 percent close-to-list-price in January and a drop to five days in the MLS, down from six last month and 24 days last year. Overall, the drive in demand has been proportionally higher for single-family detached properties than attached properties, explaining why the market is currently sitting with historic low inventory for single-family detached properties.
“Interestingly enough, just because at the end of the month there are not many houses to choose from did not affect the amount of properties going under contract,” said Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver REALTOR®. “There were 4,459 pending properties in January, which is only a 1.09 percent decrease from last year at this time, and 2020 as a whole sang a similar note.
There were more homes purchased throughout all of last year than any previous year, but at the end of every month towards the end of the year, there was not much inventory meaning the attrition rate was high.”
The report confirms that as long as interest rates continue to remain low and inventory scarce, there will continue to be multiple buyers for every appropriately-priced house, and sellers across the state of Colorado will continue to have the opportunity to navigate through multiple offers and differing terms of their choice, ultimately choosing one contract while disappointing several others.
Our monthly report also includes statistics and analyses in its supplemental “Luxury Market Report” (properties sold for $1 million or greater), “Signature Market Report” (properties sold between $750,000 and $999,999), “Premier Market Report” (properties sold between $500,000 and $749,999), and “Classic Market” (properties sold between $300,000 and $499,999).
As the market navigates the "new normal” coming into 2021, there are no signs of the Luxury Market slowing down. In January 2021, new listings for the Luxury Market jumped a little from one month ago at 2.22 months of inventory in detached luxury homes and 3.65 for attached luxury homes.
Even with less inventory year-over-year, the market still saw an 85.71 percent increase in closed attached homes and a 70.19 percent increase in closed detached homes. In January, the luxury residential market was up 85.16 percent year-over-year for sales volume of $335,859,100, up from $181,393,127 from one year ago. The detached luxury sales volume was up 90.11 percent, and the attached was up 48.36 percent from one year ago.
“Luxury buyers were jumping for joy in January because they may not have had to compete quite as much as in other segments of the market,” said Brigette Modglin, DMAR Market Trends Committee member and metro Denver REALTOR®. “Median days in MLS for detached luxury homes was 44 and 42 for attached. Buyers may have had the opportunity to negotiate a bit as the close-price-to-list-price ratio for detached homes was 97.61 percent and 97.45 percent for attached homes.”