Just as the market is poised to enter the strong spring sales season, the supply of homes in the Denver area has dipped to a record low. There were a mere 3,878 unsold homes on the market in February, according to the latest report by the Denver Metro Association of Realtors. That is a 2.78 percent drop from the previous low-water mark, which was set in January. With demand still strong, the low supply of homes has left the market with only a 1.45-month supply of unsold single-family homes. That equates to a little more than a 6-week supply of homes on the market, a 12.4 percent drop from the months of inventory available a year earlier.
The shortage of homes to buy is especially pronounced for homes priced from $200,000 to just under $400,000. There is less than a two-week supply available for homes priced from $200,000 to $299,999. Move up one tier to $300,000 to $399,999, there is slightly more than two weeks’ worth of inventory on the market. The condo market is even tighter. There was only a 1.1-month supply of unsold condominiums on the market last month, and there is less than a two-week supply of condos priced between $100,000 and just under $300,000.
One piece of positive news, however, is that more new listings are hitting the market. There were 4,561 listings for single-family homes and condos added to the market in February, almost a 20 percent increase from January, according to DMAR. New listings also were up 6.8 percent from February 2016. Of those new listings, 71 percent, or 3,247, were for single-family homes. The number of homes placed under contract picked up in February, both on a month-to-month basis, as well as year-over-year. There were 4,350 homes placed under contract in February, a 17.8 percent jump from January and almost a 5 percent improvement from a year earlier.
The increase in under contracts came, even as home prices continue to rise. The average price of all homes in February was $402,516, up slightly from January, but a 7.8 percent increase from a year earlier. The average price of a single-family home, at $447,838, showed a similar trend: barely moving up from January, but rising 8.6 percent from February 2017.
With fewer homes to choose from and strong demand causing prices to rise, this spring is sure to be a great time to sell your home.