Metro Denver had a record low number of homes for sale at the end of February, totaling only 3,878 residential properties. This marks the lowest monthly total going back to 1985.

The new low came despite a 19.25% surge in the condo inventory compared to this time last year. Unfortunately this wasn’t enough to overcome a 7.6% drop in the inventory of single-family homes available for sale.

“It is incredibly low,” according to Steve Danyliw, a Denver real estate agent and chairman of DMAR’s Market Trends Committee.

Sometimes a surge in sales drives down the inventory, but that wasn’t the case in February. The number of homes sold in metro Denver fell to 2,805, a 12.2% decline from January and a nearly 13% drop from the February 2016.

Although a big drop, sales are actually in line with the average February sales since 2000 of 2,851 homes sold. Not including this year, the average number of available homes in February since 1985 has been about 14,635. During the housing boom, from 2003-2009, buyers consistently had more than 20,000 homes to consider, with 25,484 available for sale in February 2006, recalls Danyliw.

It remains a seller’s market with demand much higher than supply. The average time on market for both single family homes and condominiums was 43 days in February. Properties below $400k continue to be in high demand selling within a week or two of being listed.

The median price of a single-family home sold in metro Denver in February was up 11.4% from the same time last year. Danyliw predicts the pace of future home price gains will slow as the year goes on due to interest rates rising and buyers being financially stretched to their limits.