Despite a pleasant, but expected, seasonal uptick in new listings in the Colorado housing market in January, a solid month of pending/under contract activity quickly engulfed available inventory, once again pushing active buyers to push the limits of their budgets. and patience, according to January data from the Colorado Association of REALTORS®.
While the volume of closings fell in January, per traditional calendar activity, the overall inventory picture remains “unprecedented and shocking” to even the most seasoned REALTORS® working in state markets. January’s active listing inventory fell to another set of all-time lows. In the Denver metro area, which spans seven counties, there were just over 1,400 single-family homes available, down 57% from a year ago, and 461 condominium/townhouse properties, in down 74% from January 2021. Statewide, a total of 4,151 single-family properties reflect a 44.5% decline from the prior year, while the 1,011 active listings of condos/townhouses represent a drop of more than 68% compared to a year ago. All of these conditions pushed the monthly inventory supply to 0.5 months or less both in metro Denver and across the state – again, record highs. A balanced market, according to the National Association of REALTORS®, would have about six months of inventory supply to create opportunities for buyers and sellers.
As a result, median prices were flat from December through January, but remain up 17-19% in the Denver seven-county metro area and statewide, with condominium/townhouse properties in the upper part of this range. The percentage of list price received also rebounded to 101-102% in January after declining slightly in the previous 4-5 months.
Accessibility and affordability remains an important theme across all markets, as the CAR Housing Affordability Index – a measure of a region’s housing affordability for consumers based on housing affordability rates interest, median sale price and median revenue by county – is down 22% from a year earlier. both in Metro Denver and statewide.
Estes Park/Larimer County
Open listings are down 71.2%, new single family home listings down 38.3% and condos/townhouses down -32.7%. Historically, Larimer County has been in a steady stream of ups and downs given new listings. Looking back, a similar mountain-like pattern has occurred since the year 2010, where the valley in the chart bottoms out during the winter months and steadily rises to its highest peak during the winter months. summer months.
“Not only has the weather slowed down this year, but registrations in Larimer County are following the same path with active registrations down -71.2%. New listings for single family homes fell 38.3% and condominiums/townhouses fell -32.7%. These figures are not as surprising as one might think at first glance. Historically, Larimer County has been in a steady stream of ups and downs given new listings. Looking back, a similar mountain-like pattern has occurred since the year 2010, where the valley in the chart bottoms out during the winter months and steadily rises to its highest peak during the winter months. summer months. This trend is likely to continue over time until new stocks can hit the market.
“With rising interest rates, it makes sense that people are making tough choices about their money and their investments. There are a lot of challenging choices to make in life, all the more so when you take a look at forecasts and numbers that may relate to your or your client’s livelihood. When average sales prices for single-family homes in your area drop to around $583,367, followed by townhomes and condos at their average of $393,000, that amount of money will have a major influence on lifestyle choices. Do we stay, invest more in our property and climb the slopes of the economy? Or do we sell and enjoy a fresh start? The choice can go either way when you look at the numbers, however, it’s not always the option as sale prices increase by +15.4% and owners see gains of up to +1, 3% off listing prices for a total of 101.5% off asking price,” said Estes Park-area REALTOR® Abbey Pontius.