January 2022: Denver Real Estate Market Update

If you need help navigating this market, call us at (303) 532-4742. Buyer fatigue is real at the moment, with lots of buyers giving up on their search. Sellers are getting bad advice, listing with no plan or execution. When you work with us, you are working with the very best Denver real estate agents. Don't leave such a huge financial decision to chance.

January 2022 Denver Market Update:

2021 proved that nothing is predictable in the Greater Metro Denver real estate market. The red hot market broke records and defied prior trends. Case in point: the average price for a single-family home was up 17% YoY in December to $702,373. 2021 also saw a record low level of inventory and a sky-high percent of closed price to list price.

Supply vs Demand from 2009 to 2021

When viewing trends across supply and demand from 2009 to 2021, it is a striking story of a prolonged seller's market with low inventory and high demand. The apex of this transpired in 2019 lasting through December 2021, showcasing increased disparity between buyers (demand) and sellers.

Supply - Active Listings

It didn't seem possible for active inventory to plunge any lower but that was the case in December. Supply was down 32% over November and dropped 64% compared to this time last year.

New Listings

December saw 2,561 new listings, but this is a drop of 12% over 2020. December is historically a slower time for new listings and, given that demand remains high, now might be a strategic time for sellers to act. The hope for buyers is that 2022 brings more listings to the market.

Demand - Pending Sales

Given the shortage of inventory, it is not surprising that demand remains roughly the same as December 2020.

Average Price per SqFt Single-Family

The average PPSF for Single Family homes is $271, an increase of 17% year-over-year. In the attached report you will also see PPSF for the Condo market.

Months Supply of Listings

The months supply of listings is calculated by taking the inventory of homes for sale at the end of a given month and dividing by the average monthly pending properties for the last 12 months. This number tells us how long our active inventory would last without any new inventory coming onto the market. This is also known as the absorption rate. A balanced market is typically 6 months of inventory. December's month supply is .3 a drop of 63% over 2020.

Percent of Closed Price to List Price

December's percent of closed price to list price remains roughly the same as 2020. This data point is still well-above prior years, again affirming a strong seller's market. This will be an interesting metric to watch as we enter 2022.

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Reports based on data from REColorado®, Inc.

GREATER METRO DENVER INCLUDES THE FOLLOWING COUNTIES:

Arapahoe, Adams, Broomfield, Denver, Douglas, Elbert and Jefferson
Reports are based on information from REColorado®, Inc. for the period shown in title. Note: This representation is based in whole or in part on content supplied by REColorado®, Inc. REColorado®, Inc. does not guarantee nor is in any way responsible for its accuracy. Content maintained by REColorado®, Inc. may not reflect all real estate activity in the market. •Information deemed reliable but not guaranteed.

Mortgage Data Source: Freddie Mac

Posted by Neil Walton on January 4th, 2022