Denver Home Inventory “Desperate!”
The Denver home inventory levels (or lack thereof) are what I consider to be in desperation mode.
The number of homes available for sale in metro Denver reached a record low at the end of February, according to a report Tuesday from the Denver Metro Association of Realtors. There were only 3,963 active listings, down 6 percent from January and 2.8 percent from February 2015.
This is the lowest amount of home for sale since 1985, when metro Denver had about half as many residents as it does now, and it could spell trouble for buyers come this spring.
From the Denver Post:
“This spring is shaping up to replicate last year’s market with high buyer demand significantly outweighing supply, which will inevitably lead to bidding wars and higher prices,” said Anthony Rael, chairman of DMAR’s market trends committee, in the report.
The winter months are normally a slower time for home sales, which can either lift inventory or depress it, depending on which side of the market is in charge.
In Denver, sellers remain in charge. To put into perspective just how tight inventory is, Rael notes that from 1985 to 2015, February had an average of 14,979 homes available for sale, and there were as many as 25,484 in February 2006.
Going into March, metro Denver homebuyers had fewer than 4,000 to choose from — very slim pickings.
The record low inventory came despite 4,269 new listings in February, a 10.8 percent jump from new listings in January.
Buyers snapped them up, putting 4,151 homes under contract, 15 percent more than they did in January.February also saw the return of sharp price gains, which had laid dormant for several months.
From January to February, the average price of a home sold rose 1.5 percent to $377,917, while the median price shot up 3.4 percent to $330,000. Median home prices, including condos, are 11.7 percent higher than they were a year ago.
“Homes priced below $325,000 are in such high-demand that multiple offers well over list price will continue to be the norm until more listings come online,” Rael said.