Low inventory and rising average prices for homes characterized the Denver market in February, according to the latest report from the Denver Metro Association of Realtors (DMAR).

Despite the fact that the Denver market “continues to stabilize,” according to Chair of the DMAR Market Trends Committee Libby Levinson-Katz, average prices are up 5.23% over January and 1.29% over February of 2022, reaching $657,921.

Interestingly, the median price dropped 5.66% from last year and is now $562,500. However, it is 4.39% higher than in January.

Meanwhile, inventory remains scarce. February’s 3,778 active listings were 208.16% higher than they were at this time last year but is just a fraction of the average number of listings for February—12,905—since record-keeping began in 1985. Last February set a record for the lowest number of listings, at 1,226.

So what does this all mean?

Levinson-Katz concludes that “we are still primarily in a seller’s market,” but adds that the bidding frenzy that took over in past years has cooled significantly.

“Buyers are watching rates closely and patiently waiting for new inventory to hit the market,” she writes. “They are more discerning about home prices, less willing to compete and will only jump into a bidding war if the house is move-in ready and suits their needs.”

The lesson for sellers seems to be that pricing homes correctly from the outset is key. “We continue to see sellers reduce listing prices or offer rate buy-downs in order to attract more buyers,” adds the report. Those priced correctly, however, are receiving multiple offers.

For buyers, the best takeaway seems to be that hope will be eternal come spring.  “The unseasonably cold winter weather and Punxutawney Phil have left many Denverites longing for spring, more inventory and a fresh start in 2023,” writes Levinson-Katz.