The number of houses for sale across the state remains at a record low.
The real estate market is not on the side of Colorado buyers at the moment. The inventory is so low, more realtors are working actively in Colorado than homes for sale.
As of mid-April, there are only 2,000 homes available for sale along Colorado's Front Range. In comparison, around 22,000 realtors are working in the state.
In major cities of Colorado, which includes Boulder, Broomfield, and Denver, inventory is down about 80% in comparison to this same time last year. According to the Colorado Association of Realtors, there were about 10,000 homes available for sale in March of 2020.
Additionally, the prices of homes that are available continue to increase. The main factor seems to be the historic lack of supply in the real estate market met with a frantic demand due to low mortgage interest rates. A recent analysis of Realtor.com listings by the National Association of Realtors noted that 64% of metro area houses were posted with double-digit increases in year-over-year median listing price.
The price of homes in the Denver metro area was up 9.8% for January 2021 compared to the same time last year, according to the CoreLogic Case-Shiller Index. Prices in the bottom third of Denver-Aurora areas, which is less than $441,000, increased 11%. The top third of the market, which is more than $582,000, increased 10%.
Many factors are contributing to the current state of the real estate market. The pandemic has played a major part in all the changes, including the historically low-interest rates, which are motivating new buyers to invest in the housing market. In contrast, sellers are now warier to sell. The pandemic has also made them more careful of letting potential buyers into their homes for showings.
Due to all of these factors, the spring season has all the indications of becoming the most competitive home-buying season in decades.
Are you currently a buyer or seller in this market? Share your experiences in the comments.