Less Than 1/2 Month of Inventory

Here is the December RE Market Report for our 7 county metro area courtesy of REColorado and SMDRA.
Buyers closed on 4,815 properties last month, a 13.3% increase from last December and a HUGE increase of 37% from December 2018.
1,521 attached homes sold last month, an increase of 20.6% from a year ago and a whopping 53% increase from 2 years ago
3,294 detached properties sold last month, an increase of just 10.3% from December 2019 and a large 31% increase from 2018.
Thankfully new listings in December totaled 2,874 a 21.2% increase from December 2019 and a 32% increase from December 2018.
New listings increased by nearly the same percentage for both attached and detached homes.
Pendings or under contracts only increased by 10.7% as 3,414 properties went under contract last month.
Average Days in Market was 22 days in December down 45% from the previous December.
The Median Days in Market was 6 days in December, down an eye-popping 75% from December 2019.
The average closed to original list price ratio was 99.6% in December, up from 96.9% in December 2019.
We ended the year with a miniscule 2,229 properties for sale, down a whopping 49% from December 2019.
This puts months of inventory at just 0.46 months or less than half a month!!!
Average closed prices last month was $534,275, an increase of 12.7% from December 2019.
Average closed prices for attached homes only rose by 3.3% to $385,014.
Average closed prices for detached homes rose by an astounding 16.7% to $603,196.
Median closed prices last month was $455k, an increase of 9.8% from December 2019.
Median closed prices for attached homes rose by 8.2% to $330k.
Median closed prices for detached homes rose by 13.3% to $500k.
The average closed price for all types of homes increased by $60,136 in the last year!
The median closed price for all types of homes increased by $41,750 in the last year!
My Comments and Thoughts-
We had the highest amount of new listings we have seen in the last 5 years by a large margin of over 20%. This is a great sign! Will this continue in January?
This December saw the highest amount of pendings we have ever seen!
We had a new record high of closings for the month of December at 4,815.
Even though new supply increased demand still out-stripped this new supply.
For only the second time in 2020 new listings year over year increased by a bigger percentage than did pendings or solds. This is a good sign and needs to continue for us to get back over 1 month of inventory.
We have had 1 month of inventory or less now for 7 consecutive months or since June and we are now LESS THAN ½ MONTH!
Amazing to see homes only selling for an average discount of 0.4% from the original list price.
Median Days in Market has been 6 days for 5 consecutive months.
Median Days in Market was less than 20 days for all price ranges under $2 million!
In 2016 and 2017, 2 very strong sales years, witnessed 14 Median Days in Market. So, by this measure our market is over 50% stronger or hotter than it was in 2016 or 2017! Or over 50% harder to buy a home.
Average Days in Market has been less than 25 days since April.
With attached homes we are seeing the lower end of homes pushing prices higher as witnessed by the 8.2% median price increase over the last year and at the same time average closed prices on attached homes only rose by 3.3%. This tells me fewer high end attached homes are selling or they are selling for smaller price increases than the lower price ranges. This makes sense as buyers with big bucks are buying detached homes instead of attached homes. Who wants to buy a $1.5 million condo in a high-rise during COVID when you can buy a $2 million detached home?
Whereas, the average price of a detached home rose by nearly 17% year over year as demand is greatest for detached homes. And the median price increased over 13% as well telling me that all price ranges are increasing rapidly.
Next week I will review year-end numbers and offer my predictions for 2021.