Home prices in the Denver area continued to rise in February while inventory fell to its lowest level since 1985, according to real-estate analyst Gary Bauer.

Bauer’s report, issued Wednesday and based on figures from Metrolist, said the inventory of homes available for sale was 6,786, down 4.3 percent from the January inventory figure of 7,094 and down 32.7 percent from the 10,086 in February 2012.

Home prices, meanwhile, increased an average of 11 percent from a year ago, further evidence of a strong market through the typically slower winter months.

Despite homes under contract climbing 13.6 percent from January, Denver-area buyers and sellers are finding themselves in an interesting position, Bauer said.

“Inventory levels haven’t been this low since 1985, but February was a nice kickoff to the spring season,” he said.

Added Metrolist president and chief executive Kirby Slunaker: “We continue to see decreases from already historic low inventory levels. Denver’s inventory situation reflects the trends we’re tracking nationally.”

The average days on the market in February was 80, up slightly from January’s 78.

In February, 2,967 properties closed, up 0.5 percent from January and up 18.9 percent from February 2012.

The median price of properties closed was $255,000 for single family, up from $250,000 the previous month and well above the $220,000 year-over-year.