DENVER – More bad news for anyone looking to buy a home in the Denver area: The number of homes on the market hit a record low last month.
There was a total of 3,878 active listings in the entire Denver metro area in February, according to the latest market trends report from the Denver Metro Association of Realtors.
While it’s not unusual for inventory to be low in the winter months, February’s numbers are the lowest of any month on record. The 31-year average for February is 14,635 active listings.
The combination of low inventory and high demand due to the influx of people moving to the Denver area means home prices continue to climb upward. The median price of properties that sold in February rose to $355,000, an increase of 9.23 percent compared to Feb. 2016.
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The low inventory is one reason the Denver area is considered the fastest-moving housing market in the country. Homes often have multiple offers within hours of being listed, especially those under $400,000.
It’s tough to be a buyer in such a tight market and many homes end up selling for more than what the seller was originally asking. Buyers are also taking additional measures to beat out other bids, including writing letters and producing videos to try to win over a seller.
Realtors say an increasing number of offers now also include so-called “escalation clauses,” wherein a buyer agrees to pay one, two or three thousand dollars more than anyone else who comes in with a better offer.