Consider the Front Range housing market this past January versus that of 2019; before the pandemic and when the market started to shift a bit. In 2019 we had almost 5,881 units available vs 1184 today, an 80% reduction! The average detached sales price today of $689,711 is up 38%. The average Day on Market was 43 and today of 19 days, a lightning-quick turnaround time.
And, while mortgage rates are expected to move higher, those increases won’t likely be enough to push rates higher than their pre-pandemic level. Although the previous two years have seen some nail-biting and record-breaking moments, we’ve also seen plenty of buyer fatigue, real estate hesitancy, and some confusion.
The confusion is due to the past 12 months of speculation that we might be in another housing bubble. It’s also important to remember that the 2021 market was anything but normal, and that escalating home values were a direct result of record-low inventory.
However, experts project that the inventory situation should improve in the coming year, slowing price appreciation, personally, it was these same experts that forecasted a rise in Q4 of 2021 and 2022 and it has yet to happen.
The next big question becomes, will home prices depreciate in 2022? Housing industry experts don’t think so. Instead, they are projecting a more modest appreciation of 5.1% in the next 12 months compared to the nearly 20% rise seen on average in 2021. Personally, I think our market will be much higher, especially for the attached market.
Inventory has been, without a doubt, the biggest player in the anything but ordinary real estate market we’ve experienced in the last two years. I have the low-down on mortgage rates, inventory details, and a few surprise moves to assist you in overcoming fatigue.
A conversation may reveal that there is good motivation for both buyer and seller in the 2022 marketplace. With experts projecting a rise in inventory and mortgage rates remaining relatively low, both sides of the real estate transaction stand to benefit from making a move sooner rather than later!
For insight into the North Metro Denver Real Estate Counties click here!
| Detached Single Family | Year to Year | ||
| Jan ’21 | Jan ’22 | % change | |
| Active Listings | 1,263 | 788 | -37.61% |
| New Listings | 2,780 | 2,378 | -14.46% |
| Pending | 2,789 | 2,568 | -7.92% |
| Closed | 2,116 | 1,889 | -10.73% |
| Closed Price Median | $509,450 | $595,000 | 16.79% |
| Closed Price Average | $626,895 | $689,711 | 10.20% |
| Days on Market | 22 | 19 | -13.64% |
| Months Supply of Inventory | 1.91 | 1.67 | -12.56% |
| Average Percent of Original List Price | 101.40% | 102.15% | 1.10% |
| Sales Volume | $1,326,510,586 | $1,302,964,840 | 1.78% |
| Month to Month | |||
| Dec ’21 | Jan ’22 | % change | |
| Active Listings | 968 | 788 | -18.60% |
| New Listings | 1,781 | 2,378 | 33.67% |
| Pending | 2,210 | 2,568 | 21.19% |
| Closed | 3,155 | 1,889 | -43.43% |
| Closed Price Median | $599,990 | $595,000 | 0.83% |
| Closed Price Average | $705,753 | $689,711 | 2.13% |
| Days on Market | 19 | 19 | 0.00% |
| Months Supply of Inventory | 0.87 | 1.67 | 91.95% |
| Average Percent of Original List Price | 101.66% | 102.15% | 0.48 |
| Sales Volume | $2,226,650,973 | $1,302,964,840 | -44.64% |
| Detached Single Family | Year to Year | ||
| Jan ’19 | Jan ’22 | % change | |
| Active Listings | 4,027 | 788 | -80.43% |
| New Listings | 3,312 | 2,378 | -28.20% |
| Pending | 2,936 | 2,568 | -12.53% |
| Closed | 1,909 | 1,889 | -1.05% |
| Closed Price Median | $425,000 | $595,000 | 40.00% |
| Closed Price Average | $500,683 | $689,711 | 37.75% |
| Days on Market | 43 | 19 | -55.81% |
| Months Supply of Inventory | 3.84 | 1.67 | -56.51% |
| Average Percent of Original List Price | 98.53% | 102.15% | 3.67% |
| Sales Volume | $955,803,847 | $1,302,964,840 | -86.36% |
| Attached | Year to Year | ||
| Jan ’21 | Jan ’22 | % change | |
| Active Listings | 1,053 | 396 | -62.39% |
| New Listings | 1,451 | 1,101 | -24.12% |
| Pending | 1,545 | 1,257 | -18.64% |
| Closed | 1,112 | 958 | -13.85% |
| Closed Price Median | $335,500 | $400,000 | 19.23% |
| Closed Price Average | $397,168 | $450,224 | 13.36% |
| Days on Market | 35 | 22 | 37.14% |
| Months Supply of Inventory | 2.25 | 1.56% | -30.66% |
| Average Percent of Original List Price | 99.75 | 101.99% | 2.25% |
| Sales Volume | $441,650,428 | $431,333,834 | -2.34% |
| Month to Month | |||
| Dec ’21 | Jan ’22 | % change | |
| Active Listings | 509 | 396 | 22.20% |
| New Listings | 871 | 1,101 | 25.68% |
| Pending | 1,111 | 1,257 | 17.26% |
| Closed | 1,349 | 958 | -32.15% |
| Closed Price Median | $381,500 | $400,000 | 4.58% |
| Closed Price Average | $441,390 | $450,224 | 2.16% |
| Days on Market | 17 | 22 | 29.41% |
| Months Supply of Inventory | 1.02% | 1.56% | 35.29% |
| Average Percent of Original List Price | 101.24% | 101.99% | 0.76% |
| Sales Volume | $595,435,339 | $431,333,834 | -30.49% |
| Detached Single Family | Year to Year | ||
| Jan ’19 | Jan ’22 | % change | |
| Active Listings | 1,854 | 396 | -78.64% |
| New Listings | 1,509 | 1,101 | -27.04% |
| Pending | 1,225 | 1,257 | 2.61% |
| Closed | 735 | 958 | 30.34% |
| Closed Price Median | 290,000 | 400,000 | 37.93% |
| Closed Price Average | 358,294 | 450,224 | 25.66% |
| Days on Market | 40 | 22 | -45.00% |
| Months Supply of Inventory | 4.57 | 1.56% | -99.66% |
| Average Percent of Original List Price | 98.59 | 101.99% | -98.97% |
| Sales Volume | 263,346,090 | 431,333,834 | 63.79% |
