It goes without saying that this year was unique for the real estate industry throughout Colorado and the country. Accelerated market trends, unprecedented transactional volumes, supply chain constraints and one of the tightest labor markets in history collided to create a frenzied atmosphere and a breakneck pace that seemed to bypass the typical ebbs and flows.
“At the beginning of 2021, there were conversations about what type of responsibility we, as Realtors, have to our clients,” commented Andrew Abrams, Chair of the DMAR Market Trends Committee and Metro Denver Realtor. “How far the comps are willing to stray with the hope that the market will keep appreciating and our clients will be sitting in equity in a short amount of time? At the beginning of the year, offers six figures over asking price were common. That need subsided by the end of June and we see that it has been less common ever since.”
From October to November, we saw a 33.41% decrease in month-end active inventory, dropping to 2,248. Throughout the entire Denver Metro area, there are only 1,444 single-family detached properties and 804 attached properties to buy. Downtown Denver experienced a remarkable rebound throughout 2021, and rental vacancy is ~3.5% in the metro area. With 2,248 active listings on the market and that number expected to decline by the end of this month, 2022 is shaping up to be another strong Seller’s market.
- Average home sales prices rose up 2.91% from October to $629,479 in November – That’s a 15.49% year-over-year increase!
- The number of closings last month dropped to 4,392, down 10.39% from October and down 8.73% from November 2020
- The average days on market increased slightly to 15, up one day from October’s average. It’s a 31.82% drop from the 20 days-on-market average in 2020
- Year-to-date there have been more houses purchased than in any of the previous five years
Noteworthy Real Estate Headlines from Q4 2021
I want to express my sincerest appreciation to you for allowing me to continue to serve you through these times and thank you for the opportunity to be a key part of your investment business and real estate transactions. If your plans for next year involve leasing, buying, or selling real estate, I would love to learn more about your needs to be a resource for you to accomplish your goals! I wish you, your family and friends a happy and joyous holiday season, and I look forward to working together in 2022 and for many years to come!
May the coming year bring you happiness, warmth, and success!