Low inventory continues to drive the local housing market, making for a competitive market with prices rising moderately month to month. According to Denver’s Metrolist, the number of homes and condos on the market in November dropped an eye-catching 27% compared to November 2013 and 18% from the previous month.

“Tight inventories that have been seen in the Denver area housing market for some time now showed no signs of easing in November,” said Kirby Slunaker, president and CEO of Metrolist, the multiple-listing service for metro Denver. “This slowing in monthly home sales is likely due to market seasonality. Even with the month-over-month inventory declines, demand remains steady, which continues to drive sales,” Slunaker said.

The condo market is especially tight, with 1,165 active listings in November – 23% less than October and 27% less than this time a year ago.

Low inventory is creating pent-up demand and impacting prices. Housing prices rose 2% from November over October and 9% from over a year ago.

Demand is also under increased pressure due to an influx of people to the state in recent years. According to the Denver Business Journal, Colorado’s population increased by 1 million people between 2000 and 2013. The Journal notes that the U.S. Census Bureau ranked Denver the fourth-fastest growing city among the 50 most-populated cities in the nation between July 1, 2012 and July 1, 2013. The state’s population has grown 60% over the past 24 years.

That growth isn’t likely to slow any time soon. A recent National Association of Realtors’ study of 100 metro areas declared that Denver will be one of the most popular markets for homebuying baby boomers in the future.

Notes the Journal, “the area’s low tax rate relative to others and abundant recreational activities make it a popular place for baby boomers.”