DENVER (KDVR) — Price is driven by supply and demand, and in Denver, housing demand is through the roof, according to real estate data.
Nationally, there are fewer and fewer homes on the market. According to Nerdwallet, there were only 1.07 million homes for sale in the U.S. in March 2021, down 200,000 from a year before.
Colorado’s housing boom began well before the pandemic. Prices have been on a steady upward path since the nation climbed out of the Great Recession and only accelerated in the late 2010s.
By the time the pandemic hit, Colorado’s housing market was already one of the nation’s hottest. After COVID-19 and its restrictions struck, that sped up. Nationally, citizens no longer saw the point to living in clustered inner city areas and bought more spacious homes in suburbs and exurbs, particularly in Sun Belt cities such as Nashville, Austin and Denver.
Real estate data shows that in-migrants from other states and new Coloradan homeowners all but bought up the state’s housing inventory over the course of the pandemic.
Data provided by the Denver Metro Association of Realtors showed a dramatic drop in housing inventory. There were 8,677 single-family home listings in the Denver metro in March 2020.
In March 2021, there were only 1,749 listings.
Homes sell very quickly, as well. Over the pandemic year, new homeowners and new Coloradans snapped up inventory at record paces. Two sets of data show the median number of days a home sat on market plummeted.
Countywide data shows the number of days on market dropped an average 28% just over the pandemic year. Since 2016, the number of days on market has dropped nearly in half.
City-specific data presents even smaller windows of time.
In the cities surrounding the Denver and Boulder metro areas, homes only sit an average 10 days before sale.
The Denver metro’s main cities lead this trend.
Denver, Arvada, Lakewood, Littleton, Aurora, Westminster, Highlands Ranch and Thornton are each in the top 15 most populous Colorado cities, and together they make up a large swath of the metro population.
In each, a homeowner could sell their single family house inside a week. Each city most recently saw either four or five days on market for the average single family home.