If you think it's been hard to find a home to purchase in Denver lately, you're not alone.
The active listing inventory in the Denver metro area has hit an all-time low, based on end-of-year data provided by the Denver Metro Association of Realtors. According to the organization's data, only 1,477 properties were on the market in the entire Denver Metro area to start the year – 11,175 fewer homes than the 1985-2020 norm of 12,652 active listings.
Home inventory in Denver was much higher in 2008, with more than 26,000 homes available for purchase. Inventory took a steep dive from 2010 to 2013, with fewer than 7,000 homes for sale at times in 2013. Inventory then dropped to around 4,000 at the start of 2015 and had since fluctuated seasonally between that floor and around 8,000 homes in the inventory until the pandemic hit. When the pandemic hit, another steep drop in availability occurred, and despite inventory rising to 4,000 during the summer of 2021, it has once again hit a new all-time low.
The 1,477 homes available at the end of December 2022 is a 42 percent drop compared to the 2,541 available a year prior.
With supply dropping, home prices have also soared. The median closing price for homes in the Denver metro market is now $545,000, which is nearly a 20 percent increase year-over-year, with the number of closed homes down close to 14 percent over the same period.
The Denver Metro Association of Realtors also attributed some of the price increase to an increase in the local conforming loan limit – which was increased to $684,250 in the Denver Metro area. Because of this increase, the majority of buyers can qualify to purchase a home for up to $750,000 with 10 percent down.
The Denver metro market is expected to stay tight throughout 2022, with home prices likely to see another double-digit appreciation throughout the year.
According to the realtor's association, "through hardship and perseverance, the Denver Metro real estate market has been the backbone of Colorado’s economy. The question remains whether the market will see significant changes in the real estate market from last year. In this market, time is money and it’s likely not to change soon."
The realtors association was also sure to note that the destruction of the Marshall Fire will likely result in an even lower inventory, as displaced residents seek new housing.
Nearby markets, such as Colorado Springs, are also expected to keep booming. According to Realtor.com, Colorado Springs is expected to be the 15th-best housing market through 2022, also likely to see double-digit appreciation.
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