The Denver-area housing market has never been tighter. According to the most recent report by the Denver Metro Association of Realtors, there were 3,989 active homes on the market in January. That is not only the lowest inventory level ever reported for a January, but also the fewest number of homes on the market ever. The record low inventory level resulted in a mere 1.41-month supply of unsold homes on the market last month. Here’s another way to look at it: if every home was sold and no new homes made it to the market, buyers would have no more homes to purchase in a mere six weeks.
Every price strata last month showed a drop in inventory levels from January 2017. Only homes priced at $1 million or more would arguably be considered a buyer’s market, with an inventory of nine months. However, even in that price range, there has been a year-over-year 14.3 percent drop in supply. For homes priced from $100,000 to just under $400,000, there is less than a one-month supply of inventory. Only homes priced between $750,000 and $999,999 would be considered one in balance between buyers and sellers, with about a 5.5 months inventory.
As expected, with such a low supply of homes on the market, home prices continue to rise. The average price of all homes sold last month topped $400,000, rising 8.35 percent to $402,979. The average price of a single-family home rose even more. Single-family home prices jumped 9.25 percent to $448,374. Overall, the sales volume of all homes last month topped $1.2 billion, an 8.31 percent increase from a year earlier.
As winter begins to wind down, with the confluence of a record low inventory and rising prices, now is a great time to call a real estate professional and put your home on the market. It’s an especially great time to sell your home, as mortgage rates remain low. With a 30-year fixed-rate hovering around 4.2 percent, it’s an increase from the very bottom but still extremely low by historic standards.