2021 Denver Real Estate Continues Its Aggressive Market
- Average Price of both Single-Family homes and Condominium Homes Year over Year in January was $550,165 vs. $475,689 in 2020, a 16% appreciation over January of each year. So long as the inventory is at very low numbers prices will continue to rise.
- Inventory for January 2021 decreased 12% over January 2020. This does show that Denver homeowners are not putting their homes on the market right now. From September 15, 2020 to February 15, 2021, inventory decreased 62.6%. This is a significant decrease in inventory meaning demand for homes should remain constant through the next several months as buyers will not want to miss housing opportunities, and into the first quarter of 2021 at these low rates.
- The number of homes closed in January 2020 was 3,361 compared to 3,164 in January 2021, a 6% decrease in closings. The reason there were fewer closing in 2021 is because the inventory is so low that buyers cannot find homes to buy.
- Days on the Market is 26 days which is 42% lower than 12 months ago. However, the number of homes placed under contract in January 2021 is about the same at 4,558 over January of 2020 of 4,507.
The accelerated marketplace for real estate in Denver for the 4th quarter of 2020, has rolled over to 2021 and we would suggest this low inventory and brisk sales volume to continue through the spring. As interest rates start to rise and prices reach new levels, buyers demand will slow down later ins 2021 as the affordability of housing will reach levels that are unsustainable. Now’s a great time to sell your home or buy your next home as the real estate perfect storm is lowest interest rates in modern real estate history making housing still affordable in Denver.