fbpx

Denver Real Estate Forecast & Market Report – February 2021

February 2021 Denver Real Estate Market Forecast

Record Low Inventory In Denver Keeps Prices Steady As New Listings Go Under Contract In Days With Multiple Offers.

The 2020 peak housing season in the Denver area posted 4 consecutive months when more homes sold than any month in previous years. This coupled with seasonally low numbers of incoming new listings resulted in a shortage of homes for sale. While the number of homes that have sold in past couple of months are similar to the numbers we typically see this time of year, the inventory shortage has followed us into the winter months. As of January 31st, our inventory was 55% lower than it was at the same time last year.

The best way to read this post: The majority of this post is comprised of me analyzing different metrics to break down what is happening with price, supply and demand across different segments of the Metro Denver real estate market. This helps me determine where the real estate market has been, where it is now and forecast where it is likely to be in the near future. If you are a stats nerd like me, you might enjoy reading the entire post, if not - skip to the summary at the end of each section, or all the way down to the overall Denver real estate market review and Denver real estate forecast at the end of the post. If you are reading this post on a cell phone, turn your device sideways to see the graphs in their entirety.

Metro Denver Real Estate Statistics Snapshot - All Property Types

Latest Month
January 2021
Previous Month
December 2020
Year Over Year
January 2020
Median Sold Price$447,750$450,000$410,000
# of Active Listings3,2883,7067,270
# Under Contract5,8534,9724,887
# Sold Homes3,9636,4204,164
Months Supply of Homes0.50.61.2
Median Days on Market7828

Metro Denver Real EState Prices

Median Closed Price For The Entire Denver MLS - All Property Subtypes

The median sold price of homes closed (single family detached and attached) dropped slightly from December to January to $447,750. Market prices are up 9.2% year over year from January 2020.

Median Closed Price - Single Family Homes

The median sold price of single family houses remained unchanged from last month at $485,000. Single family home prices are up 9.3% year over year from January 2020.

Median Closed Price - Attached (townhomes and Condo)

The median sold price for condos and townhomes in Denver dropped slightly from December to $305,000. Prices are up 11.9% year over year from January 2020.

Pricing Summary

Overall, prices dropped .5% from last month, however single family house prices remained unchanged from sales in December and January. Prices are up 9.2% year over year from this time last year.

Metro Denver Real Estate Supply

New Listings

Historically, new listings coming on the market are at there lowest point during November, December and January. 3,492 new single family homes were listed in January which is about 800 homes or 20% less than we have seen in January over the past 2 years.

Homes For Sale - Metro Denver, All Subtypes

The supply or inventory of homes for sale is the Denver metro area is at an all time low. Only 2,029 single family homes were available for sale as of January 31 2021 – 60% less than the same time last year.

Supply Summary

Record low inventory levels are creating fast sales at top dollar with multiple offers. The median days on market for single family homes during January was only 5 days!

Metro Denver Home Buyer Demand

Sold Homes - Metro Denver, All Subtypes

2,717 single family houses sold throughout the Denver real estate market in January 2021, which is similar to the numbers we typically see this time of year.

Pending Sales - Metro Denver, All Subtypes

The pending homes sales metric is the best indicator of our current market because it is our most recent metric and tells us how many homes went under contract during the month of January, while closed sales and closed price in January show the results of homes that went under contract months ago in December and late November.
December and January both posted a typical number of pending sales for this time of year in Denver.

Demand Summary

Demand is where it normally is this time of year. Almost 4,000 single family homes went under contract during the month of January.

Interest Rates

According to Bankrate.com’s Rate Trade Index, “Mortgage experts mostly expect rates to either remain the same or rise in the coming week (Feb. 4-10). In response to Bankrate’s weekly poll, 50 percent said rates will go up next week and 42 percent said they would stay the same. But there was some dissent: 8 percent said next week will see mortgage rates decline again.”

Today’s Most Prevalent National Rates as reported by Bankrate.com.

  • 30 YEAR FIXED – down to 2.85% compared to 2.91% last month.
  • VA – down to 2.77% compared to 3.11% last month.
  • FHA – up to 2.71% from 2.66% last month.
  • 15 YEAR FIXED – down to 2.35% compared to 2.38% last month.
  • 5 YEAR ARMS – up to 2.97% from 2.89% last month.

Denver real estate Forecast and market review

Pricing – All segments of homes throughout the metro Denver area dropped .5% overall. Single family house prices remained unchanged from sales in December and January. Prices are up 9.2% year over year from this time last year.

Supply – Record low inventory levels are creating fast sales at top dollar with multiple offers. The median days on market for single family homes during January was only 5 days!

Demand – Demand is where it normally is this time of year. Almost 4,000 single family homes went under contract during the month of January.

What’s Next For The Denver Real Estate Market? – My Denver Real Estate Market Forecast: – Prices will begin to push up again as we move further away from the holidays and approach spring. Low inventory will continue to make it hard for buyer, especially those looking to purchase single family homes under $500,000. The biggest positive for buyers is that interest rates are remaining low.

Is a Wave of Foreclosures on the Horizon? – Maybe, but it will not have much of an effect on our market if it does come. Unlike in 2008, most homeowners in the Denver area have equity in their homes today. When the moratorium for foreclosures is lifted, these homeowners can either modify their loans or sell their homes at a profit rather then letting them fall into foreclosure. The homes that do go into foreclosure will likely be bought at auction rather than falling to the banks for REO or bank owned sales. 

Share this post

About the Author

Nathan Hart, CRS, ABR, PSA, RENE
Nathan Hart, CRS, ABR, PSA, RENE

I have been a REALTOR in the Denver area for 25 years. Through continuing education and extensive real-world experience, I have become an expert in the real estate field. Blog posts give me an opportunity to share my knowledge and insights.

If you know of anyone who is thinking about buying or selling a home, please share their name with me or my name with them.

let's Have a Conversation!

Send me your contact information and I will reach out to you as soon as I can.

Can’t Wait? Call or Text Nathan at
303-564-4055.