According to the Colorado Association of Realtors February report, although the Denver metro area experienced an inventory increase from 2475 active listings in February 2022 to 4108 last month, the housing market remains unbalanced.

Last month, the monthly supply of houses statewide was just over one month, and while that’s a 120% year-over-year increase, there still need to be more homes to meet demand.

In the report, Matthew Leprino said that with supply remaining low — up four times the amount from this time last year but still 75% short of anything resembling a balance of supply and demand — one would hope that more inventory and lower prices would be a positive development for the buyers who just want to get into a good home.

Additionally, as we roll into spring home prices are ticking up. Statewide, single-family homes recorded a median price jump of 3.1%, rising from $520,000 in January to $536,000 in February.

The number of homes sold statewide dropped last month compared to February 2022 — 4231 properties changed hands — a drop of about 20% from a year ago.

In the Denver metro area, 2537 homes sold in February 2021 — down from the 2949 homes that sold last February.

The limited supply is causing home prices to climb again statewide after nine months of declines.

According to the realtor association’s monthly report, single-family homes in the Denver Metro Area saw a median price hike of 1.8%, going up from $569,804 in January to $580,000 in February.

March through July typically is the state’s busy homebuying season. Price increases tend to be cyclical and we see them from March through July, then they plateau and fall the rest of the year. Industry insiders expect prices to increase in the coming months, but don’t anticipate a return to last year’s bidding wars.

If you’re a motivated buyer, this spring could shape up to be a great time to become a homeowner. Inventory is limited, but there are still great properties to be found. Give Metrowest a shout today and let’s go over your options!