In February we endured yet another month of record-low inventory for the residential market in the Denver metro, and the increase in homebuying activity that began last summer has continued to drive price and competition up.

According to the latest monthly report from the Denver Metro Association of Realtors, the low volume of active listings in the 11-county metro — there were 2,024 available homes at the end of February, a 58.14% year-over-year decrease — doesn't tell the full story of the local market.

Andrew Abrams, chair of DMAR's market trends committee and a Denver Realtor, said the underlying theme of the market today is "speed." In comments accompanying DMAR's report, he noted the rapid pace at which buyers are scooping up homes relative to the number of sellers listing. Homes are quickly going under contract and prices are accelerating as homebuyers seek to make the often-elusive winning bid.

Just how fierce is the competition? DMAR's report indicated some listings are seeing more than 100 showings in a weekend and receiving upward of 20 offers. Abrams himself recounted writing two separate offers on behalf of clients that were $101,000 and $90,000 above asking price. Neither of those offers ultimately won out.

Other report highlights include:

·       3,641 homes sold in February (including both detached properties, such as single-family homes, and attached properties, such as condos), up 3.7% from February 2020. Another 4,706 sales were pending at the end of the month.

·       The median closing price for a single-family home was $530,000, up 21.84% year over year. For an attached home, the median price was $337,250, a 12.79% increase from a year ago.

·       Attached properties appeared to be gaining ground in February. While the number of closings for detached properties was down 1.8% year over year, the attached market saw closings increase 16.29% from a year ago.

·       The average closing price for an attached home also surpassed $400,000 for the first time in history, reaching $401,552.

If you’re thinking of becoming a homeowner in 2021, start by having all your ducks in a row. Not sure where to start? Give Metrowest a shout – we’d love to help you start the process!