According to the most recent trends report from the Denver Metro Association of Realtors (DMAR), there were more homes purchased in 2021 - 63,684 - than any previous year. Demand was remarkably high, but the number of new listings that hit the market throughout the year was down 5.26 percent.

At the beginning of January 2021, there were only 1,477 active properties on the market in the entire Denver Metro area, which is 11,175 fewer houses on the market than normal. Based on the continued demand for housing and lack of inventory, the market is projected to see double-digit appreciation this year.  Denver hasn’t seen back-to-back years of double-digit appreciation since 2015-2016 and 1998-2000.

There are a few factors that will impact this continued acceleration in house prices. The first is supply and demand. There are currently 41.87 percent fewer houses on the market at the beginning of January 2022 than there were at the beginning of January 2021. The second factor is that conforming loan limits increased to $684,250 in the Denver Metro area. That is $37,050 higher than the nationwide conforming limits. This means that the majority of buyers can purchase a home for $750,000, putting down 10 percent without it turning into a massive loan.

During the holidays, the seasonal slowdown resulted in the number of new listings and pending and closed properties dropping off as people focused on the holidays and not on real estate. While active homes on the market dropped 41.87 percent market-wide, the Luxury Market continued to outperform with a five percent increase in December for new listings.

New listings for detached homes climbed slightly by 1.40 percent from last December, while closed listings increased 9.06 percent. Even with a seasonal shift, the average days in MLS fell 30.19 percent to 37 days and median days in MLS dropped 59.09 percent from 22 days to nine compared to last December. Meanwhile, the attached market continued to shine as new listings climbed 35.29 percent year-over-year with 23 new listings. Closed sales came in at a staggering 89.66 percent gain with sales volume following closely with a 75.36 rise with $75,932,105 closed volume.

If becoming a homeowner is one of your 2022 goals, you’ll need two things. The first is patience. The second is an experienced pro to help you navigate. Contact Metrowest today – we’d love to discuss your options!