Metro Denver inventory hits record low in january 2022
Prospective homebuyers in the metro Denver area who were waiting for a significant increase in inventory during December 2021 and January 2022 did not see the increase they were hoping for. According to the Denver Metro Association of Realtors (DMAR), the market typically sees a 70 percent increase in new listings from December through January, but there was only an increase of 31.04 percent in the first month of this year.
The market ended with month-end active listings at a new historic low of 1,184 listings, which is more than 10 times less inventory than normal. Year-over-year new listings were down 17.77 percent. The average active listings for January from the years 1985 to 2021 is 12,732. The record high for January listings was in 2008 with 24,550 listings. This is not good news for prospective buyers.
Competition for homes is so high that double-digit offers are commonplace. In some cases, buyers are offering $1 million in cash on a $900,000 home, and they are often getting outbid. Last year at this time, the inventory was considered low with 2,316 active listings at the end of the month. This year, month-end listings are nearly half that, down almost 49 percent from last year.
The record low inventory was not helped by the Marshall Fire, which swept through Boulder County, destroying or damaging nearly 1,000 homes and dozens of businesses. At the end of January, there were just 788 active single-family listings in the metro Denver area, down 18.6 percent from the prior month. With 396 active listings, attached homes were down 22.2 percent month-over-month. This low inventory means more competition and increased prices.
Prices are likely to skyrocket in the next three months, according to a spokesperson for DMAR. While many buyers are frustrated, there are still some decent opportunities. Now is the time to buy, according to some industry observers. Interest rates are expected to rise, which will decrease a buyers’ purchasing power. Even during these difficult times, home ownership has never been more valuable, and ownership will continue to hold great value.