New historic inventory lows hit the market in January 2022.
While traditionally the market sees a 70 percent increase in new listings from December to January, the market ended down 17.77 percent in new listings compared to 2021, a 31.04 increase from the previous month. Likewise, the market ended with month-end active listings at a historic low of 1,184.
Last year at this time, there was little inventory. This year, there’s nearly half as much at 48.88 percent less.
This will likely translate to fewer homes being bought and sold over the course of the year as there is less to choose from in the Denver Metro area, inciting the continuation of extreme bidding wars.
In the Luxury Market, buyers and brokers ask whether $1 million is really considered luxury at this point.
The average sales price for the Luxury Market remains at $1.6 million, and it has been for many years. In 2014, the average price for a single-family home was $380,848 and the average price for an attached property was $238,229. Today, the average sales price in Denver for a single-family home is $689,711, and $450,244 for an attached home, and the average for the Signature Market is in the mid- $800,000’s.
Inventory for the January Luxury Market was up exactly 100 percent for luxury detached homes, and up 82.61 percent for luxury attached properties.
It didn’t take long for all that inventory to go though, as 43.48 percent of the detached luxury homes and 19.35 of the attached luxury homes went under contract.
While Denver Metro had more inventory, the sales volume was down for detached and attached segments.
The luxury detached sales volume was down 49.86 percent from the prior month and 11.78 percent from one year ago, as Denver saw 47.29 fewer luxury properties close from the prior month and 9.51 percent from this time last year. The attached luxury sales volume was down 48.23 percent and had 55.36 percent fewer luxury condos sold from the prior month and 13.79 percent from one year ago.
*Written February 7, 2022. Updates may be available after this date.