Market Fun Facts (2/03/21): What will round two of the COVID Pandemic look like this winter as we close the books on 2020 and enter into the 2021 season. To answer this question NeXstep continues to monitor inventory levels across the 6 County Denver Metro. This month we are down (-253) active properties from January’s count for a total of 2,448. Sales have also decreased since January with 1,823 fewer sales. This slow down in sales did increase our absorption rate fell from .52 months to .72 months. Only Denver County has over 1 month of inventory. For the second month in a row there are no counties that have 1,000+ active listings going into February. Denver County leads with the way with 883 active listings. Broomfield County continues to have the fewest listings with only 60 active properties. Current publications indicate a balanced real estate market would need a minimum of 18,000 listings. Thinking about selling…let’s talk!
What do these numbers mean? To help understand what these numbers mean to our local markets we are now including the number of sold comps during the past 30 days or 1 month. Looking at our sold numbers over the past month allows us to calculate a monthly absorption rate. An absorption rate tells us how many months it would take to sell off our entire inventory should we have no new listings. A balanced market is considered 6 months. Below we see all 6 counties are under 1 month.
Talking Points For February 2021
Special thanks to the Denver Metro Association of Realtors for the following Market Summary:
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.”