For Denver house hunters 2021 hasn’t brought about much of a change. Would be buyers are still faced with low inventory and record prices, but how high can they expect those prices to get?

January was another record breaker in terms of home prices, with single-family homes in the Denver metro area selling for an average $626,159, up 18.7 percent year-over-year. The previous record was set in October with homes selling for an average of $625,100. The average price of attached properties—condos and townhomes—also jumped to $397,792, exceeding $395,000 for the first time, according to a recent Denver Metro Association of Realtor’s Market Trends Report.

While the numbers keep climbing, Andrew Abrams, chair of DMAR’s Market Trends Committee, says he thinks at some point there will be a normalization, where we’re not seeing double digit appreciation.

The increase in prices is a matter of supply and demand. The metro’s ended January with 2,316 homes on the market, marking the second time Denver had fewer than 3,000 active listings. The previous record-low was set in December 2020 with 2,541 active listings.

However, there were still homes to be sold. More than 4,200 homes were put on the market in January, up 39 percent from December but down 13 percent year-over-year. Even with low inventory, 3,015 homes sold last month, with most going for over list price.

Buying in a seller’s market can be a challenge, but it’s certainly not impossible. The key is to have a team of pros on your side to help navigate the waters. If becoming a homeowner is one of your goals for 2021, give Metrowest a shout – we’d love to help you start the process!