January home sales data: Average price, low inventory set records

The combination of low inventory and rising prices continues to drive Denver metro’s real estate market. (BusinessDen file)

It’s expensive to be a homebuyer in the Denver metro area.

The average price of a single-family home reached a record average price of $629,159 last month, according to the Denver Metro Association of Realtors’ monthly market trend report. The median price was $510,000.

Attached properties also hit a record average price of $397,792.

“I see prices going up at least through the summer; I can’t see how they wouldn’t,” said Andrew Abrams, DMAR’s chair of the market trends committee and broker/owner of A-Squared Real Estate. “They’re dictated by supply and demand, and supply is relatively low while demand remains incredibly high.”

The association’s numbers pertain to an 11-county region it considers the metro area. Those counties are Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park.

Pickings remain slim. The inventory of homes is typically low in January, but last month’s inventory was the lowest ever — only 2,316 active listings.

And whatever is on the market sells fast. Single-family homes spent a median of five days on the market, compared to 24 days in January 2020. There were 4,459 pending contracts by month’s end, a 1 percent decrease from last year.

“There are people still selling, but the name of the game is speed,” Abrams said. “After you see a house, you have to quickly make a decision but also feel comfortable making a strong offer. But as long as interest rates stay low, buyers will always be wanting to buy.”

The luxury market, or homes and condos priced over $1 million, saw a lot of activity but was not quite as competitive last month. Detached homes spent a median of 44 days on the market and condos spent a median of 42.

There was an 85 percent increase in condo closings and a 70 percent increase in closed single-family homes. Sales volume in January reached $335.8 million — up 85 percent from January 2020’s $181 million.

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