(The Center Square) - Denver-area Realtors are expecting next year to be a seller's market after the latest monthly market report showed a 34 percent annualized decrease in inventory.
According to the November market report, Denver had just 2,248 active listings at the end of the month, a record low for the metro area. Meanwhile, the average days that homes spend on the market has dropped nearly 32 percent to 15 days.
These factors are part of why the average close price on residential real estate in Denver has climbed to more than $629,000, representing a 15 percent increase from November 2020, according to the report.
"While it may be common for buyers to take their foot off the gas and enjoy December festivities, this is the year to put the pedal to the metal in trying to find a property," Andrew Abrams, chair of the Denver Metro Association of Realtors Market Trends Committee, said in a statement.
One reason the market report points to for the low inventory count is that Zillow, which owned more than 500 homes in the Denver metro area, is selling off its holdings as the company winds down its home-flipping operation.
However, the low inventory hasn't stopped some homebuyers. Abrams said more homes have been sold so far in 2021 than in each of the past five consecutive years.
If inventory continues to fall in line with analyst expectations, Denver could see a year-end inventory drop of 25 percent to just over 1,600 homes. That would make 2021 the most competitive year on record, according to Abrams.
Last month, Realtors closed nearly 4,400 transactions in Denver, representing an 8 percent dip from November 2020 and a 10 percent drop from October.