Denver average home price reaches $705,753 for single family homes in December, 2021 – a 15.61% increase compared to a year ago.
However, there were fewer choices for homebuyers in Denver metro area this holiday season. Both the number of new listings and homes sold dropped month over month. The number of new listings added to the Denver area housing inventory was down 29.09% month over month and 12.65% year over year. The reduction contributed to shrinking of the number of active listings 1,444 active listings for both single family homes and attached homes in December, a 34.30% drop month over month and 41.87% year over year.
Closed sales were down 15.13% month over month and 16.88% year over year, mainly because there is hardly any inventory. The average days on the market increased slightly to 18 days from 15 days the month prior, but down 24% compared to a year ago at 24 days. The close-to-list price ratio was down slightly 0.09% month over month, but up 1.16% to 101.53% year over year.
There are a few factors that will dictate this continued acceleration for the Denver average home price. The first is supply and demand. There are currently 41.87% less houses on the market at the beginning of January 2022 than there were at the beginning of January 2021. The second factor is the conforming loan limits increased to $684.250 in the Denver metro area. That is $37,050 higher than the nationwide conforming limits. This basically means that the majority of buyers can purchase a home for $750,000, putting down 10% without it turning into a massive loan.
For the luxury segment (properties sold for $1 million or greater), a total of 4,672 single family homes sold in 2021, up 53.99% year-over-year, while the attached segment experienced a 140.46% gain with 630 homes sold. Even with a seasonal shift, the average days in MLS fell 30.19% to 37 days and median days in MLS dropped 59.09% from 22 days to nine compared to last December. Closed sales came in at a staggering 75.36% gain with $75,932,105 closed volume.
Looking at November’s numbers, the average home price for single family homes reached $703,753, while the average price for attached homes were $443,665. Denver average home price for both segments topped $628,794, up 15.82% year-over-year. From October to November, the market saw a staggering 33.41% decrease in month-end active inventory, dropping to 2,248. Throughout the entire Denver Metro area, there are currently only 1,444 single-family detached properties and 804 attached properties to buy. Over the past five years, month-end active inventory dropped between 23.36% in 2016 and 27.92% in 2019. Average days in the MLS year to date were 15, up 20% compared to month prior, but 25% down year-over-year.
Cash buyers scoop up a third of homes – Nearly one-third of U.S. home purchases this year have been made to cash buyers.
Goldman Sachs – According to a new Goldman Sachs market forecast, economists predict that home prices will grow another 16% by the end of 2022 for the U.S. market.
Average homeowner equity gains in third quarter – The average home equity gained between the third quarter of 2020 and the third quarter of 2021 is about $57,000, according to a CoreLogic Report.