December saw another month of inventory declines as more homes went under contract (3,321) than there were new listings (2,652).
Demand is at an all-time high with 63,684 homes sold in 2021, the highest number ever, while new listings for the year were down 5.26%.
Buyers continued to enjoy lower interest rates in December, while the increase to conforming loan limits for 2022 means even greater buying power.
Home prices are mostly holding steady into the winter when we normally have a slight seasonal reduction in close price.
Days on Market
While most homes are under contract after the first weekend, homes on the market longer offer opportunities to buyers.
With limited new listings in the market through the holidays, active buyers found good options in older inventory.
More inventory is available for those looking in the $300-$750k range as it made up 72% of closings last month.
The chart above is called a “walk”:
- The first box on the left is the inventory we had at the end of the previous month (and thus the start of this month).
- The second box adds the new listings which became active during the month.
- These first two boxes give us our total home inventory for the month.
- The third box is the number of properties that went under contract, which reduces our availability.
- The fourth box shows homes that were removed from the market without going under contract, which reduces the number.
- Finally we are left with the total inventory at the end of the month.
The chart above is a bar chart showing the number of homes sold in the month by price bucket. Blue is the number of detached, single-family homes; while pink is the number of attached, multi-family homes. Charts like this are helpful as they easily show where we see the most activity.
Data source: DMAR Real Estate Market Trends Report
The Denver Metro Area encompasses 11 counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park.