Year-End Special: Denver Housing Market Report 2021
Let's talk about how did the Denver housing market report in the Denver Metro Area went this 2021 and its historically record-breaking statistics.
It is important to understand what is happening currently in the Denver Metro housing market and as well as why it is happening especially if you are thinking of buying a home in Colorado or selling a home in Colorado. Understanding the real estate market reports is a great start to observe the changes that happened in 2021 and 2020, unfold challenges, and discover opportunities that both buyers and sellers can benefit from in today's Denver Metro real estate market. My Colorado Move is here to dive deep into these numbers with you.
Denver Metro Housing Market Report
High demand, low supply. The last month of 2021 Denver Metro housing market report showed the historically low active inventory in the Denver Metro area at month's end yet it also showed a record-breaking increase in home prices. In 2021, the interest rates remained consistently low. However, this is projected to change this 2022. Big names in the US real estate market like Fannie Mae, Freddie Mac, and many more have predictions of interest rates and mortgage prices increasing in 2022. The 2021 Denver real estate market statistics showed the lowest month-end active inventory at only 1,477 where it dropped drastically by 34.30% compared to the previous month and a huge 41.87% drop compared to 2020. This drop in active inventory is 11,175 fewer homes for sale in the Denver Metro area than normal. In terms of the attached and detached single-family home in the Denver Metro area, the December 2021 Denver real estate market report only had 968 single-family detached homes for sale and only 509 attached properties for sale by month's end throughout the entire Denver Metro area which is the lowest it has been for 2021.
The shortage of homes for sale in the Denver Metro area is one of the biggest factors of the continuous increase in home prices. There were more buyers than there are homes available for sale not only in the Denver Metro area but in almost all areas nationally. We have seen home buyers having to compete for the highest offer and offers with the best terms. Another factor is the increase of conforming loan limits to $684,250 in the Denver Metro area which is $37,050 higher than the entire conforming loan limits in the US. This encouraged buyers to buy a home in Denver now as they can purchase a home for $750,000 and only put 10% down without it being a jumbo loan.
In the December 2021 Denver housing market report, there were only 968 single-family detached active homes at month-end on the market which showed a 32.96% decrease compared to the previous month and a 26.44% decrease compared to last year. There were also 1,781 new homes listed on the market at month-end which also showed a 30.43% decrease compared to the previous month and a 12.78% decrease compared to the previous year. There were 3,155 single-family detached homes were sold in December 2021 which showed a 16.40% decrease compared to the previous month and also a 12.26% decrease compared to the previous year. Detached single-family homes for sale in Denver are slowing down a bit with an average of 19 days of being live on the market compared to 15 days from the previous month. However, the average closed price went up to $705,753 showing a 0.25% increase from the previous month and a 15.61% increase compared to the previous year and a day faster compared to the previous year's 20 days.
In the attached market, attached single-family homes in Denver showed a 36.69% decrease in active homes at month-end at 509 attached homes compared to the previous month and a whopping 58.45% decrease compared to the previous year. There were only 871 new listings that showed a 26.19% decrease from the previous month and a 12.37% decrease compared to the previous year. There were 1,349 sold attached single-family homes in Denver also showed a 12% decrease from the previous month and a 17.44% decrease from the previous year. Days in the market for attached homes are also slowing down also only by just a day with an average of 17 days of being live on the market compared to 16 days from the previous month yet 15 days faster than the previous year's 32 days.
Buying or Selling a Home in Colorado
2021 was a year of an extreme seller's market and we can see that continuing in 2022 so if you are planning to sell your home in Colorado, do it now! It's the best time to sell your home in the Denver Metro area as there's a shortage of homes for sale in the market, there are more buyers, and you can expect multiple offers, even an above asking price offer for your Denver, Colorado home.
On the other hand, if you are planning to buy a home in Colorado, you need to do it ASAP. Why? The longer you wait, the more home prices are going up. As we've mentioned before, it's been projected that interest rates will start to slowly go up so doing it at the earliest time possible will save you more money. Experts' prediction states that in 2022, we can see interest rates starting to rise again and expect that home prices will continuously increase towards the end of 2022. f you are a buyer and have been planning to own a home in 2022, this is the time to stop waiting. If both home price and mortgage rates increase, you will be paying a lot more if you wait until the end of the year. Do it as early as you can! The increase in the interest rates, the mortgage rate will result in an increase in home prices. The earlier you start the home buying process, the better.
You deserve a real estate agent who has a proven strategy, is a strong negotiator, and is backed with experience to help you be successful in today's challenging Denver real estate market. If a new home in Denver is on your goal this 2022, My Colorado Move, is here to help you find your dream home.
Our goal is to help our clients understand how these changes impact them to be able to create a strategy to benefit from the current Denver housing market. It is still definitely a great time to sell and move up to buy in many Denver communities with today's real estate opportunities.
To download or see a copy of the full report, click here.