Demand was strong in 2021 as buyers quickly scooped up available inventory as mortgage rates remained low. Throughout the year, New Listings struggled to keep pace with demand and, as a result, available inventory hovered at record-low levels. In 2021, the Average Closed Price for a home also hit record levels surpassing the $610,000 mark. The average price of a single-family residence was 18% higher than we saw last year, and the average price of a multi-family/townhome/condo was 14% higher. Buyers were quick to put contracts on homes, which took them off the market in an average of just 15 days.
Read on to see the housing market stats from a record-setting year.
- Demand for homes was strong in the Denver Metro area in 2021 thanks in part to low interest rates and buyers who were prepared to write offers. Throughout the year, the number of homes that sold was down just slightly compared to the record-breaking year we saw in 2020.
- The number of New Listings that hit the market did not keep pace with demand, which made inventory a challenge throughout the year. Supply of inventory hovered at all-time lows throughout the year.
- Homeowners who chose to put their homes on the market saw prices skyrocket 17% compared to 2020 figures. Many fielded multiple bids and all-cash offers.
- Contracts were written on homes at a record pace in 2021 with homes spending just over 2 weeks on the market on average.
- Economic forecasters expect the sales season to start early as buyers try to get early offers in on homes to beat any mortgage rate increases. Competition on limited inventory is expected to remain fierce, which could push prices higher.
2021 Closed Listings
The number of listings that closed in 2021 was down slightly from the record-breaking year we saw in 2020 primarily due to a lack of available inventory on the market. Of all closed listings, approximately 69% were single-family residential homes with the remaining 31% multi-family/condo/townhomes. The second part of the year was very active. June saw the most closed homes, 6,587, followed by July and August.
2021 Pending Listings
Motivated buyers prepared to purchase their next Colorado home were abundant in 2021. In 2021 there were 63,251 contracts written on homes, which is down slightly from 2020 but 5% higher than 2019. The busiest months were May, June, and August when the number of listings moved to pending status climbed above the 6,000 mark.
2021 Closed Prices
Strong demand and low inventory levels throughout the Greater Denver Metro Area kept closed prices high, up 17% from 2020 figures. Prices were at their lowest in January and reached a peak of an average of $640,552 in June. Compared to last year, the average closed price of a multi-family/condo/townhome was 14% higher than last year. The average closed price of a single-family residence increased 18% reaching $688,516.
In 2021, 41% of listings that were sold had a closed price in the $400-500,000 or $500-600,000 price range. We saw increases in the number of listings sold in all price ranges $500,000 and higher, which drove the gross sales volume in the Denver Metro area to more than $38 billion in 2021, an increase that nearly mirrors the increase we saw in the average sold price.
2021 New Listings
Sellers were hesitant to bring new inventory to the market in 2021. As a result, the number of new listings we saw during the year was lower than we’ve seen since 2016, which kept available inventory of available listings at record lows. The majority of the listings that did hit the market were in the $400-500,000 and $500-600,000 price ranges, which is a shift from previous years to a higher price range.
Days in MLS
Listings were available for sale in the MLS for an average of just over 2 weeks in 2021 as buyers were prepared to quickly put contracts in place on available inventory. The homes that moved off the market and into the Pending status the quickest were in the $300-400,000 and $400-500,000 price ranges.