Record inventory lows pushing home prices to historic heights

DENVER — Across Colorado, historically low housing inventory combined with strong demand are pushing median sales prices to record highs, a phenomenon that’s especially accurate in the Boulder Valley and Northern Colorado. 

“Despite a month filled with inflation concerns, a geopolitical crisis in Ukraine, and rising prices for basic commodities, the fundamental elements of supply and demand continued to dominate housing inventory and pricing statewide,” the Colorado Association of Realtors said in its February 2022 housing report released Thursday.

Here are some highlights from the report:

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Boulder Valley

There were 113 listings in Broomfield County that came on the market in February, but most are under contract, leaving just 15 active listings over which buyers could compete.

In Boulder County, there was a meager 0.4 months of inventory on the market, down 55.6 from the same month last year. 

“Preparation is the key in this market,” Realtor Kelly Moye said in the report. “In Boulder and Broomfield counties, the listings continue to disappear, and the buyers are still coming out of the woodwork to try to make a move before interest rates creep up even more. With an inventory of about 14% less than what we had last month, the competition is fierce. Buyers must be prepared to have their financing completed, understand contracts, negotiations, and how to write a competing offer. Sellers have to be prepared to understand the same and, more importantly, have a place to go when their home sells quickly.”

Northern Colorado

“Compared to February of 2021, new, single-family listings are down 35% in Larimer County, with townhome/condos down even more at -44.6%,” the report said. “Year-to-date, single-family homes have received 102% of list price and townhome/condos are reaching even higher at 102.7% of list price. The $668,234 average single-family sale price is a staggering 27.5% higher than February 2021.”

Narrowing in on the Fort Collins market, Realtor Chris Hardy said, “The really good news is that in the first week of March, the Fort Collins market has seen a dramatic uptick in new single-family listings (more than 90 so far while there were just 144 for all of February). The bad news is that Fort Collins has set a new monthly median price record of $625,000. Contrary to T.S. Eliot’s opinion, March appears to be the cruelest month.”

In Weld County, monthly new listings were down nearly 14% year over year and median prices were up 18%, nearing the half-million-dollar mark.