Homes for sale reach record low

The number of homes available for sale in metroDenver reached a record low at the end of February, according to a report Tuesday from the Denver Metro Association of Realtors.

Therewere only 3,963 active listings, down 6 percent from January and 2.8 percent fromFebruary 2015.

That is the lowest inventory since the DMAR started tracking the market in 1985, when metroDenver had about half as many residents as it does now, and it could spell trouble for buyers come spring.

“This spring is shaping up to replicate last year’s market with high buyer demand significantly outweighing supply, which will inevitably lead to biddingwars and higher prices,” AnthonyRael, chairman ofDMAR’s market trends committee, said in the report.

Thewinter months are normally a slower time for home sales, which can either lift inventory or depress it, depending on which side of the market is in charge.

In Denver, sellers remain in charge. To put into perspective just how tight inventory is, Rael notes that from1985 to 2015, February had an average of 14,979 homes available for sale, and therewere as many as 25,484 in February 2006.

Going into March, metro Denver homebuyers hadfewer than 4,000to choose from— very slim pickings.

The record low inventory came despite 4,269 new listings in February, a 10.8 percent jump from new listings in January.

Buyers snapped them up, putting 4,151 homes under contract, 15 percent more than they did in January.

February also saw the return of sharp price gains, which had been dormant for several months.

From January to February, the average price of a sold home rose 1.5 percent to $ 377,917, while the median price shot up 3.4 percent to $ 330,000. Median home prices, including condos, are 11.7 percent higher than they were a year ago.

“Homes priced below $ 325,000 are in such high- demand thatmultiple offers well over list price will continue to be the norm until more listings come online,” Rael said.

Depleted inventory

Fewer than 4,000 homes were available for sale in metro Denver at the end of February. That’s the lowest in records going back to 1985.