Prices Reach a Record High While Inventory Levels Dip to a Ten-Year Low
The holiday season did not slow the pace of the housing market as consumers continued to snap up available properties in December, pushing prices up as supply levels declined for the third consecutive month.
According to the latest monthly report by REcolorado, Colorado’s largest MLS, the average sale price for a single family home was up three percent over last month and 11 percent as compared to last year, bringing home prices in the Denver area to a record high of $339,636.
Single family home sales totaled 3,983 units, an increase of four percent over last month and a two percent increase year over year. The market absorption rate—the rate at which the market absorbs the inventory of homes that are for sale—dipped to a six week supply, versus a seven and a half week supply last month and an eight week supply December last year.
“During the holidays we typically see slowing in the housing market, but this year, home buyers kept the market more active than usual,” said Kirby Slunaker, president and CEO of REcolorado. “Inventory levels remain tight, which is keeping Denver-area average sales prices strong and the absorption rate significantly lower than the national supply of approximately five months of inventory.”
In December, 5,352 active listings were on the market in the Denver metro and surrounding area, an 18 percent decrease as compared to last month, and a 27 percent year-over-year decrease. These numbers reflect inventory levels lower than we’ve seen in over a decade.
Typical for December, the number of new listings that came on the market dipped. New listings were down 22 percent as compared to last month and relatively flat as compared to December 2013.
“It was exciting to see buyers continuing their home searches through the holiday season,” said Mark Trenka, owner of Trenka Real Estate and chair of REcolorado. “This will be good news for sellers as the days lengthen into the late winter and early spring season. I anticipate buyers will see more selection in inventory as the first quarter gets into full swing.”