In January of 2021, the Denver Metro housing market continued to be one of the hottest markets in the country and again broke an all-time record, a new inventory low with only 2,541 total properties on the market. Simple supply and demand will lead to an acceleration of appreciation. This is close to half of the supply that we had at this time last year. Mortgage rates are at all time lows propelling buyer’s demand.
Single-family homes hit a record average price of $629,159, while attached properties hit a record of $397,792. We saw a 101.03 percent close-to-list-price in single-family homes in January and a drop to five days in the MLS. This is down from six last month and 24 days last year. The overall demand for single-family detached homes has outpaced the demand for single-family attached homes.
So long as interest rates continue to remain low and inventory at all-time-lows, there will continue to be multiple buyers and bidding wars for properties that are appropriately priced.
A good example of how busy our market has been is Highlands Ranch. At the end of December 2021 the Highlands Ranch community had approximately 31,000 properties and only 10 detached homes and 7 attached homes were on the market, which equates to .05% of the market.
Year over year median detached properties appreciation rose to 12.93% and attached properties rose at a rate of 7.11%.
Average days on market for detached homes dropped to 20 days and 31 days for attached homes.
One area of the market that has had some resistance to Denver Metros strong demand is the Downtown Denver area including capitol hill and uptown. It has not only been more difficult to sell homes in these areas but also more difficult to rent homes. This is due to many factors including and not limited to many more people working from home, the condition of downtown and the area surrounding the capitol building, social distancing, and Denver’s homeless problems.
The luxury market also stayed strong throughout the year posting record breaking numbers. Pending sales jumped 36 percent year over year. Average days in the MLS dropped to 51 days down from last years 67 days.
For more information contact DenverRealEstateMoguls.com