With Denver area for-sale home listings at the lowest point since 2014 in February, buyers "still have an inventory problem," according to the latest report from the Denver Metro Association of Realtors.
There were 3,778 homes for sale at the end of February, including single-family homes and condominiums, according to the latest Market Trends report. That's down 8.3% from January — but a huge 208% increase in the number of homes for sale in February 2022.
"Buyers are watching rates closely and patently waiting for new inventory to hit the market," Libby Levinson-Katz, chair of the association's Market Trends Committee, said in the report. "They are more discerning about home prices, less willing to compete and will typically only jump into a bidding war if the house is move-in ready and suits their needs."
Jenny Usaj, owner of Usaj Realty in Denver, said two things are driving Denver's lack of inventory. First, more than 93% of Denver area homeowners have an interest rate lower than 5%. With rates increasing sharply in 2022, owners are less willing to sell because of the rate on a new buy. Plus home appreciation has been strong in Denver, she said, "much better than the stock market."
"It's a little bit more of a balanced market, but that said things are heating back up," Usaj said. "We just inked a deal 17% over list price, one of 10 offers."
It all depends on the neighborhood and move-in ready condition of the house, she said.
As Denver marches towards its traditionally busy spring season, the average sale price clocked in at $657,921 in February. That's 5.23% higher than January's average and a 1.29% increase year-over-year. The median sales price hit $562,500, up 4.39% from the previous month but down 2.17% from February 2022.
The average days on market of 48 crept up 4.35% from January and a whopping 242% from the February 2022 average days on market. Buyers closed on 2,661 homes in February, up 22.51% month-over-month but down 24.87% year-over-year.
"There are definitely more buyers than homes for sale right now," Usaj said. "What's standing out to me is how quickly things are picking up."
The report covers transactions from the greater Denver metro area, including the counties of Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.
