It’s All About That Pace – Housing Inventory and Buyer Demand Tug-of-War Rages On

In most markets across the state, the pace of available inventory slowed in October and was quickly consumed by the insatiable demand that has come to define the Colorado housing market in 2021, according to the latest monthly market data and analysis from the Colorado Association of REALTORS^®.

“The pace at which homes are selling remains robust, but the dynamic has changed. In the Fort Collins area, 225 new listings came on the market and 256 listings were sold. This single ratio describes the ongoing disparity between supply and demand; more homes sold than came on the market leaving supply well below demand,” said Fort Collins-area REALTOR^® Chris Hardy.

In Metro Denver, inventory fell month-over-month, with fewer listings available resulting in fewer sales, escalating single-family median sales price from $562,000 in September to $570,000 in October. Year-over-year, new listings are down 9.8% for single family and -19.3% for condo/townhomes, sold listings for single family is down a staggering 22.2% and -13.9% for condo/townhomes, and median sales price is up over 14% for single-family and 11.6% for condo/townhomes as eager buyers clamor to pin down an ever-shrinking pool of available homes.

“We all know prices are up and ‘affordability,’ well, what does that even mean anymore? It seems the definition can sometimes change from month to month as a relative response to what a ‘normal’ house sells for. That said, we know Denver is no longer the affordable relocation destination it once was,” said Denver-area REALTOR^® Matthew Leprino.

Statewide, new listings for single-family properties have fallen 8.1% over this time last year, resulting in an 18% drop in sold listings, causing a related spike in median sales price up 15.4% from October 2020. Townhouse/condo property types have fully recovered from any discernable slump caused by the pandemic and are seeing the same trends as other property types, with a more aggressive 16.9% drop in inventory, 15.6% drop in sold listings, and a 12.4% jump in median price over October 2020. “Townhouse/condos are considered more affordable in Larimer County and I believe this property type is filling a gap in affordability, for now at least,” said Estes Park-area REALTOR^® Abbey Pontius.

Mountain resort communities continue to see an influx of outside buyers, pushing inventory to new lows. “The lack of inventory continues to steal the headlines in La Plata County. October single-family new listings dropped 41% from the same time last year. Single-family inventory fell 55% to just over a month and a half supply,” said Durango-area REALTOR^® Jarrod Nixon.

While the Colorado housing market usually sees seasonal slowdowns during the fall season, REALTORS^® across Colorado continue working at a feverish pace as demand marches on. “What seasonal slowdown? After a somewhat typical end-of-summer market, the housing market must have taken a note from the Broncos playbook – we’re back. With the days on the market averaging just 35 in Boulder and 13 in Broomfield, homes are selling as fast as they did in the spring,” said Boulder/Broomfield-area REALTOR^® Kelly Moye.