From October to November, the market saw a staggering 33.41 percent decrease in month-end active inventory, dropping to 2,248. Throughout the entire Denver Metro area, there are currently only 1,444 single-family detached properties and 804 attached properties to buy.
Over the past five years, month-end active inventory dropped between 23.36 percent in 2016 and 27.92 percent in 2019. Theoretically, if inventory stayed the course and dropped 25 percent this year, the market would end the year at 1,686 active properties. This is drastically lower than the end of 2020 and would lead to the most competitive year yet. With 2,248 active listings on the market, expectations are set that 2022 will be a wild and competitive ride.
Buying and Selling
Despite high competition on the horizon, people continue to buy and sell relentlessly. Year-to-date, there have been more houses purchased than in any of the previous five years. The median sales price for single-family and attached properties setting records at $525,000.
While it’s common for buyers to take their foot off the gas during the holidays, this is the year to put the pedal to the metal. Interest rates are low, and looking while others are not gives one a competitive advantage, which in this current market is a must.
Luxury Real Estate
In the Luxury Market, Denver has more buyers ready to spend $1 million or more on their home today. November 2021 was more of the same record-breaking trends with lowest inventory, lowest days in MLS, highest sales volume and highest average prices. In the pandemic world of the “new normal,” this is it for Denver’s Luxury Market.
Last month, inflation drove up the prices for Denver real estate. The sales volume in the Luxury Market is up a staggering 69.17 percent from last year alone. When breaking it down to the attached market, luxury sales are up a whopping 145.84 percent year-over-year. This is likely due to the lack of interest in attached living in 2020.
Based on the numbers today, it will undoubtedly be the most expensive season the Luxury Market has seen to date to buy a home unless a hard shift in interest rates occurs.