January Market Update
The Denver market continues to see high demand and increased appreciation even in January. While we often see reduced available inventory in the winter months, this January was a new record low with just 2,316 active listings at month-end. New listings were up over December, but the 4,214 listings were still 13.19% less than last year. This scarcity is leading to an increase in closed sale prices with the average sales price hitting $550,425, 15.71% over January 2020. We expect appreciation rates to remain high as inventory remains low. This appreciation is also affecting the Denver suburbs, where competition is increasing and we are seeing multiple buyers for appropriately-priced homes.
The inventory shortage is having a greater effect on the detached market with only 1,263 active listings at the end of January. We are seeing the close price/list price passing 101%, proving that competition is a real factor. Some demand has spilled over into the attached market with 8.3% more pending attached transactions over 2020. This is a sign of increasing buyer confidence in attached homes that previously wavered in light of COVID-19, where more buyers favored larger, more private space.
Buyers continue to experience historically low-interest rates, but another way a buyer can differentiate themselves is a savvy real estate agent. We are seeing more creatively structured deals and an experienced real estate agent can tip the scales in your favor. As always, the market is ever-changing, so to get a personalized market analysis, reach out to the Generator team!