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Denver Real Estate Forecast & Market Report – January 2021

January 2021 Denver Real Estate Market graphs

Inventory Can't Keep Up With Demand as More Home Were Sold Than Any Other December on Record

December was another strong month for the Denver Metro Area housing market. Throughout the month 5,113 homes closed, more than any other December on record. Buyers brought 3,017 New Listings of homes for sale to the market, 18% more than last December. Strong demand kept home prices high.

2020 was record breaking for the Denver Metro housing market. Brokers wrote more contracts on listings and more homes sold than any other year on record. The number of New Listings sellers brought to the market could not keep pace with demand, which pushed down inventory levels. Prices reached all-time highs and half of all homes spent a week or less in the MLS.

The Denver MLS / REColorado Market Watch Statistics

The following statistics come from REcolorado and show data for the Greater Denver Metro Area (Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park Counties). MOM represents the percentage of change from last month while YOY represents the change from this time last year.

Homes Closed -5% mom, +12% yoy

In December, 5,113 homes closed, a year-over-year increase of 12% and a seasonal month-over-month decrease of 5%.

The count of listings in Pending status was 3,600, which is 9% more than December 2019 and 22% fewer than last month.

Denver number of homes sold December 2020

Sold Prices -1% mom, +13% yoy

Denver homes average sold price December 2020

The Average Closed Price of a home in the Denver metro area in December was $543,677, a year over-year increase of 13%. Prices were relatively unchanged compared to last month.

The Average Closed Price for Single Family homes saw a 16% year-over year increase. Multi-Family/ Condo/ Townhomes closed for 4% more than last year at this time.

New Listings -18% mom, +18% yoy

Throughout December, 3,017 New Listings of homes for sale hit the market, which is 18% higher than December of 2019. Compared to last month, the count of New Listings saw a seasonal decrease of 18%.

At the end of December, there were only 2,487 Active listings on the market, 51% fewer than last year at this time and 31% fewer than last month. Currently, there are 2 weeks of inventory, 3 weeks fewer than this time last year and 1 week fewer than last month. 

number of homes for sale in Denver on December 31 2020

Days in MLS +2 Days mom, -17 Days yoy

Average days on market Denver real estate December 2020

Denver metro homes spent an average of 24 Days in the MLS in December, 17 days less than this time last year and 2 days more than last month.

On average, Single-Family Residences were on the market 20 days, while Multi-Family/Condo/ townhome properties were on the market 31 days.

The median number of days a home spent in the MLS in December was 7, which is 17 days less than last year at this time.

Metro Denver Real Estate Market Snapshot - December 2020

Denver real estate market snapshot December 2020

Year To Date

In 2020 a record number of homes closed in the Denver Metro market. As compared to last year, 8% more homes sold. The number of New Listings that were brought to the market did not keep pace, which contributed to very low inventory levels. Homes that came on the market were quickly scooped up, spending an average of just 26 days in the MLS. Strong demand and low inventory kept prices high. The Average Closed Price for homes were higher in 2020 than any other year on record.

Interest Rates

According to Bankrate.com’s Rate Trade Index, “Mortgage experts were mixed on where rates will go in the week ahead (Jan. 14-20). In response to Bankrate’s weekly poll, 46 percent predicted a rate increase, 36 percent said rates would fall and 18 percent said they would remain the same.”

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

  • 30 YEAR FIXED –  2.91%, down slightly from 2.92% last month.
  • VA – up to 3.11% compared to 2.84% last month.
  • FHA – down to 2.66% from 2.81% last month.
  • 15 YEAR FIXED – down slightly to 2.38% compared to 2.39% last month.
  • 5 YEAR ARMS – down to 2.89% from 3.01% last month.

Denver real estate Forecast

What’s Next For The Denver Real Estate Market? – My Denver Real Estate Market Forecast:
The Denver real estate market will continue to favor sellers because of the low inventory and high demand. While the number of sales has decreased due to the seasonal cycle, the number of homes available is over 50% less than this time last year and the number of home buyers is higher.  Prices fell for the second straight month to end the year, only slightly though. Low inventory will continue to make it difficult for lower priced buyers; however, if you are considering buying, January will provide a better opportunity than if you wait until February or beyond when prices start their annual rise again.

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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.

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