That’s according to REcolorado’s monthly report of the market. The report found that active listings rose 63% in January 2016 over December 2015, increasing from 2,542 to 4,148. This news should bring sighs of relief to buyers, who have been frustrated in recent years by an exceedingly tight market, with low inventory fueling fierce demand.
Additionally, homes took 15% longer to sell, staying on the market an average of 38 days rather than 33 in December. Last year, homes often sold in less than a month, resulting in a frenzied shopping experience for potential homebuyers.
The rise in listings and days on the market, however, doesn’t necessarily mark a trend that will continue throughout the year, experts caution. Listings are typically low in December and rise in January. For example, in January 2015, the market experienced a 57% increase over December of 2014, according to Denver Real Estate Watch. Even with the upsurge in January, the number of active listings remain much lower than they have been historically in the Denver area.
Overall, industry watchers believe that the market will continue to remain heated in 2016, with home prices rising, albeit at a lesser rate, over last year. In 2015, prices rose 13%. Many industry observers predict that prices will rise another 5 to 7% in 2016. The average sold price of a single family home was $370,378 in January.
“If January is an indication of what to expect in 2016, we can look for a competitive and fast-paced market, with inventory remaining tight and prices holding strong,” Slunaker told Denver Real Estate Watch.