After a record number of home sales in Northern Colorado in 2020, would there be a similar demand for housing in 2021? Yes. Home sales reached a 15-year high with about 6 million homes sold nationwide.
Inventory moved fast in 2021 — creating an extremely competitive market — and leaving standing inventory in short supply. Traditionally, a balanced housing market is characterized by six months of supply, meaning enough houses are available that it would take six months to sell them all, based on historical buying trends. Except for homes priced over $1 million, supply was at less than two months across the region.
Low mortgage rates are key to housing affordability and thus a driving force behind housing demand. While average rates on 30-year-fixed loans inched up from the start of 2021, the 3.11 percent rate as of December 30 remained below the 3.74 percent average at the end of 2019.
Now that 2021 is officially behind us, here’s a look back at the market statistics and trends that embodied this memorable year.