December 2021 Denver Market Update: 

December 9, 2021

December 2021 Denver Market Update: 

Housing inventory took an even more drastic drop in November throughout metro Denver. Prospective buyers have even less inventory to choose from with only 2,047 active listings – a new jaw-dropping low. With only 0.4 months supply of listings, in order to have a balanced market for both buyers and sellers, we would need to add an additional 26,111 homes onto the market!

A few factors continue to fuel the low inventory: record low-interest rates and the increase in new buyers. Millennials are among the biggest demographic purchasing homes – most as first-time home buyers. When strong demand is coupled with low supply, housing soars. As you can see for November, the average price for a single-family home is up 16% over 2020.

 

 

Supply – Active Listings

Active inventory has been historically low all year and hit an all-time low this month. Inventory plunged by 43% from just last month and went down 59% compared to this time last year.  Prior to COVID – from 2017 to 2019 – inventory averaged 7,679 active homes. In 2020, the average number of homes on the market was 6,584, or 14% less. This year the average number of active listings is 3,493 – an astonishing 4,186 fewer homes than pre-COVID.

Demand – Pending Sales

Traditionally, the Holiday Housing Market is a slower time of year with the more “serious” buyer holding court, but 2021 continues to defy prior trends. Demand is at an all-time high, exceeding demand in 2020 by 5%.

Days in MLS

The average days in the MLS have continued to tick upward since July, a welcome relief for buyers who are seeing some payoff for their patience. While demand is still red hot, additional days on the market indicate that the days of fierce bidding wars have cooled slightly.

Percent of Closed Price to List Price

November saw a 102% percent of closed price to list price. While trending slightly downward, this data point is still well-above prior years.

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