Denver’s supply of homes for sale in the metro area continues to be an issue with just 337 more listed for sale in the first 2 months of 2018 versus 2017 (8288 v 7951). The days on the market continues to hover in the 6 day range while the median prices is up $40,000 from $350,000 to $390,000 for January & February. The heart-breaker for Buyers is that on March 5th there were only 3,908 “active” listings available for purchase. The overall indication is that in the 7 county metro Denver area we will continue to see that kind of appreciation as well as a very strong “Sellers” market for the foreseeable future. For a bit of the “national perspective” read on…
In any given market, inventories fluctuate based on supply and demand considering area and price range. The National Association of REALTORS considers a balanced market to be a six-month supply of homes.
If it takes longer than six months to sell, it is thought to be a buyer’s market and less than six months, a seller’s market. Most buyers and sellers probably feel a balanced inventory is more like three months’ supply of homes.
The inventory of existing homes has been reduced to approximately 1.5 million houses which is 10.3% lower than a year ago. According to the Federal Reserve Bank of St. Louis there are 5.7 months’ supply of new homes currently on the market in the U.S.
Inventory has a direct impact on price. When demand is constant, but inventory is reduced, price tends to increase because the same number of people are trying to buy a smaller than normal number of homes.
As easy as it is to recognize the signs of spring, one should be able to spot the direction prices will be moving. When prices and mortgage rates are increasing, buyers are affected by not being able to afford the same price or size of homes.
While the Denver area has fewer homes for sale (this has been caused by the builders cutting back drastically in the 2008 era and we are now short of single family homes by between 50,000 and 80,000) there are other parts of the country that offer a: great life styles and b: more economic housing choices that support both full time & silver collar work forces. As a Certified Residential Specialist and a Senior Real Estate Specialist I can help you identifying those opportunities. So contact Pete, an SRES for a consultation.