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The February Denver Real Estate Market Trends Report, published this morning, February 3, by the Denver Metro Association of Realtors, shows detached single-family homes in the area broke another record for the average price of over $ 629,000 in January.
That’s an increase of nearly $ 100,000 over the same period last year.
The development is even more astonishing given the timing. January is traditionally a time when the Denver area real estate market slows down as fewer people look to move in the winter months. But 2020 has defied expectations at every turn and exceeded an average price of 600,000 US dollars for the first time in August and exceeded this threshold even with falling temperatures.
DMAR’s analysis points to another dataset to explain the phenomenon: Housing stock is at the lowest level ever recorded by the organization. Active offers for single family homes in January were 1,263 compared to 1,316 in December and 3,297 in January 2020. These numbers represent a decrease of 4.03 percent from the previous month and a decrease of 61.69 percent from the previous year.
The following graph from the report, covering the period from 2008 to January 2021, shows how historical these current trends are. The yellow line corresponds to active offers, while the blue line refers to sales that were closed in the respective months.
The number of properties listed usually drops in January, but it hasn’t this year as more sellers responded to the legions of house hunters in the market. Last month, DMAR counted 2,781 new listings, an increase of 36.12 percent from 2,043 in December. However, the total number of available homes in January 2021 was still 14.46 percent below the 3,521 new registrations in January 2020.
As demand again outstripped supply, the average single-family home price hit $ 629,159, up 2.89 percent from $ 611,459 in December. But that’s nothing compared to the January 2020 increase when the average price was $ 530,092.
In the meantime, properties continue to be snapped up at a dizzying pace. The average number of days a single family home appeared for sale on the area’s Multiple Listing Service (MLS) was just five days in January, compared to six days in December and 24 days in January 2020 – a staggering increase from 79.17 Percent.
And the experts at DMAR do not see this scenario changing in the short term and describe it as the “new normal”. Which doesn’t resemble the old normal in the least.
Click here to read the Denver Metro Association of Realtors Market Trend Report February 2021.
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Michael Roberts has been writing for Westword since October 1990 and has worked as a music editor and media columnist. It currently covers everything from breaking news and politics to sports and stories that defy categorization.