(The Center Square) – The median sales price of homes in Colorado has increased by more than 15% since October 2020 as housing inventory continues to lag demand, according to the latest data from the Colorado Association of Realtors (CAR).

Statewide, the number of new listings has fallen 8.1% on an annualized basis, resulting in an 18% drop in home sales. At the same time, CAR data show the average sales price of homes in Colorado has climbed 10.7% since last year up to $678,755.

Homes that are listed for sale are spending less time on the market as well. Homes spent an average of 28 days on the market in October compared to an average of 43 days a year ago.

“We all know prices are up and ‘affordability,’ well, what does that even mean anymore?” Denver area realtor Matthew Leprino said in a statement. “It seems the definition can sometimes change from month to month as a relative response to what a ‘normal’ house sells for.”

The seven-county metro Denver area saw its inventory fall by 9.8% to just over 4,700 homes with nearly as many sold listings, according to the data. Meanwhile, the median sales price increased to $570,000 from $562,000 in September.

Jarrod Nixon, a realtor in Durango, said mountain towns are also being squeezed by low inventory and high demand from outside buyers.

For example, Nixon points to La Plata County, where October’s single-unit listings were down 41% when compared to last year. This leaves the market with just over a month-and-a-half of supply, Nixon said.

Attached properties like townhomes and condos are also seeing increased demand as buyers feel more comfortable in close living quarters than they did last year, according to Boulder-area realtor Kelly Moye.

Moye said the median home prices for townhomes and condos in Boulder are up 10% since last year compared to the 23% gains for single-unit homes. However, the average days on market for attached homes also dropped, a sign that buyers are expanding their options as winter approaches.

“This market might just drive right through the holidays,” Moye said.