The good news is that the percentage of List Price to Sales Price is up a little more than 1%. The better news is that the Average Days on Market across the Front Range is down a little over 26%. The BEST news is that the number of homes under contract is up almost 10%!
The bad news, if you are one of the hopeful home buyers seeking a new home, is that inventory, down a bit over 10%, is at barely a month's supply.
The S&P Case-Shiller Home Price Index, considered among the leading measures of U.S. home prices for decades, indicates prices are still rising. The most recent data suggest price increases have accelerated since the 4th quarter of 2020!
What does this mean for potential buyers, sellers, and our markets in general?
As long as we keep seeing less than 4-6 months of housing supply, leaving us with a lower than normal number of homes for sale, prices will most likely continue to increase, simply due to the principle of supply and demand.
However, one factor that may drastically change this situation is the coming spring market. Since spring is historically when the greatest number of homes go on the market, that should cause prices to begin moderating from their current upward pace.
Consider last year's statistics compared to our recent statistics. In February 2020 here on the Colorado front range, there were 5974 homes available for sale. February 2021 saw available inventory for the month of 5346. Of those available homes in 2020, 4448 sold and closed. February 2021, 4526 sold and closed.
The average sales price in February 2020 was $487,500, while February 2021 saw an average of $582,620. For Days on Market, an excellent indicator of the relationship of buyer activity to inventory, February 2020 average was 46. February 2021 average was 32.
While still following a cyclical projection, the cycle appears to have taken an odd turn here and there!
Whether you are a seller or buyer, rapid changes require instant access to the very latest data available without delay to make informed decisions about your real estate concerns.