For homebuyers in Denver’s real estate market, the first two months of 2022 have been brutal as inventory levels continue to decline, according to the latest monthly market data report from a real estate industry group.
So far this year, there have been just over 7,600 homes listed for sale in the Denver metro area with just under 2,500 of those homes being listed in February, the Denver Metro Association of Realtors’ (DMAR) report said. The average days on market for both detached and attached homes fell to 14 and 16 days, respectively, which only adds fuel to the competitive fire in the resale market.
“We are not just ending each month with low inventory, but we have had a lack of inventory enter the market throughout the year,” Andrew Abrams, who chairs DMAR’s market trends committee, said in a statement. “The lack of supply coupled with the surplus of buyers has caused prices to rise quickly.”
According to the data, Denver’s median close price for detached residential units came in at more than $635,000, representing a nearly 6% month-over-month appreciation. Attached residential units have a median close price of $405,000, representing a less-than 2% appreciation rate.
Rising home prices are also having a trickle-up effect on the rest of the market. February’s close-to-list ratio came in at 105.5, which is up more than 3.6 percentage points on a monthly basis, DMAR’s data said. This ratio means that buyers are paying an average of 5.4% above asking price for each home, though many are paying much more.
“Last month, I had clients close on a house for $10,000 under asking price in the same week that I had clients close on a house $250,000 over asking price,” Abrams said. “The biggest difference between the two was location and condition.”
Looking ahead, Abrams said he expects another year of double-digit price appreciation for homeowners. He added that springtime may bring a bit of a reprieve for homebuyers as local inventory tends to increase in March, but it likely won’t do anything to quell the number of offers each listing receives.
This article was originally posted on Denver homebuyers face stiff competition as inventory levels decline