January 2021 was another interesting month for residential real estate in the Denver Metro area! The market continues to set new records with record low inventory and strong demand. The key areas for demand are showings set and contracts accepted. Supply of properties to sell has continued to be an issue.
Demand is still quite strong in the Denver Metro area which is evidenced by showings and contracts. We listed a house in Bennett in January with good showing activity and multiple offers.
There were 104,950 showings in January! This marks a 30.7% increase compared to January 2020. This shows the appetite for real estate. Properties that went under contract were a little above this time last year but there are a lot fewer properties listed for sale.
We have been saying this for months… but we still have a lack of inventory. Sellers have been reluctant to list their property for sale and January 2021 was no exception.
January had 3,734 active listings. This is the lowest amount of inventory in the last 10 years! When comparing YOY the volume of listings is down (43.7%).
Historical trends indicate that more and more sellers will list their properties for sale in the coming months, so if you are frustrated by not liking your options more properties are coming soon.
The low mortgage interest rates, strong buyer demand, and record low inventory has pushed prices to new heights!
When looking at detached single family homes the average sales price in January 2020 was $516,783, and the average sales price in January 2021 was $628,783. This represents a 21.7% increase YOY.
Attached single family properties (condos and town homes) saw a more modest 9.8% increase from $372,733 in January 2020 to $409,347 in January 2021. The average sales price for the entire market rose to $546,654 which is also a new high.
The months of inventory measurement helps us to see what kind of market we are in. Low months of inventory gives sellers the upper hand. High inventory gives buyers the upper hand. As of January 2020, we have still had only 1 month of inventory. We have been trending at this level since June 2020.
All in all, demand is still strong with showings hitting a new record and a steady flow of contracts. Supply is still low with sellers reluctant to list. We have seen very strong market appreciation during the last year. More listings are coming soon and they cannot get on the market fast enough.
Here is a link to the full analysis: