Unlike the complete unpredictability of 2020, 2021’s real estate market saw a closer semblance to a typical market, with more of the seasonal ups and downs we expect throughout the year. We saw a slight slowdown in the number of transactions during the third quarter, unlike 202 where pent up demand led to a strong summer and fall market. Despite this slowdown, low inventory continued and the market stayed busier than typical years, inflating prices and diminishing number of days on the market.
We began 2022 with a historic 30-year low of homes for sale in our metro areas. Our buyers have not seen a break from the stiff competition over the last couple of years, and they are paying more than ever to own a home in our state. Average home sale prices across Colorado for single family detached homes hit $697,762 in December of 2021 (compared to $489,243 in December 2019). It’s an incredible time for Colorado sellers who have built a great deal of equity quickly. In December 2021, the statewide average number of days on the market was 34 days (down 15% from December 2020), and in the Denver Metro it was a mere 18 days (down 25% from 2020).
Adding to the inventory crisis in Boulder and Broomfield counties, the devastating Marshall Fires at the end of 2021 resulted in over 1,000 homes lost. Buyers here have a substantially diminished home selection to choose from. Those searching for homes are now faced with a decision to keep waiting and risk even higher prices, or to fiercely compete for the few available options.
*Data compiled by First Alliance Title, Colorado Association of REALTORS and REColorado
