The Denver-area housing market kicked off the new year with a historically low number of listings for any January on record. There were a mere 3,869 actively listed homes available for buyers in the first month of 2018, a 3.01% dip from a year earlier, according to a recent report by the Denver Metro Association of Realtors. The low inventory led to a double-digit percentage drop in sales, but also a double-digit increase in average sales price. The 2,736 single-family homes, town-homes, and condos that traded hands last month represented a 15.45% year-over-year drop and a whopping 36.22% drop from December, according to DMAR’s data. The number of sold homes equated to 70.7% of the active inventory.
The brightest news from the report was that 4,085 homes were placed under contract in January, representing a 34.5% jump from December and a 9.76% percent increase from January 2017. There were almost as many homes placed under contract last month as the 4,182 new listings added to the market in January. The number of listings added to the market jumped an amazing 77.5% from December and marked a 9.69% increase from January 2017. Buyers in January were snapping up homes soon after they hit the market. In other words, “they are buying off the top,” rather than purchasing homes that had been sitting on the market.
The first month of the year ended with a mere 1.48 months of inventory. That’s less than a 6.5-week supply of homes on the market. From homes priced from $200,000 to $499,999, there is less than a month’s supply of homes on the market. The low inventory coupled with relatively strong buyer demand, once again led to double-digit increases in sale prices on a year-over-year basis. The average price of all homes sold last month was $449,429. That represents an 11.84% increase from a year earlier and a 1.56% increase in demand. The average sales price of a single-family detached home in January was $490,932, almost a 10% increase from a year earlier.
Condos and other attached homes rose even more. The average sold price of a condo in January was $354,613, a 22.7% increase from a year earlier. Despite the rising prices, the drop in the number of sales led to a 5.4% drop in total sales volume on a year-over-year basis. The sales volume for all homes was $1.229 billion in January, compared to $1.3 billion in the first month of 2017, according to DMAR.