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Denver Metro Housing Inventory Sinks

December 5th, 2011 | Written by | Market Reports for Parker Colorado

I’m shocked. The Denver Metro housing inventory is so low I’ve never seen so few homes and condos for sale.

Homes For Sale Inventory Drops!

I was surfing the market stats yesterday and I couldn’t believe what I saw. Check out the numbers below and see what you think.

Denver Metro Housing Stats October 2010 versus October 2011.

  • Active Listings = 23,049 for 2010 and 15,512 for 2011. This is a 32.7% decrease in inventory. Remember that just a few short years ago in 2008 we were regularly pushing 34,000 homes on the market.
  • Sold Listings = 2,914 in 2010 versus 3,279 for 2011. Yes a 12.5% increase in homes sold in the Denver Metro.
  • Total Days on Market = 101 in 2010 versus 100 in 2011. No real change since many sellers are still over pricing homes when they initially list their homes for sale. .
  • Average Sold Price =  $264,448 in 2010 versus $244,764 which is a 7.4% price decrease year over year for the month of October. However for the year to date the average price is only down .7%. Many sellers try to unload homes before the Winter season hits so it’s not uncommon for prices to drop in the Fall.
  • Percent of Sold Price to List Price = 96.5%  in 2010 versus 96.9% in 2011. This is the difference between what the seller was asking for their house and the actual selling price.

Douglas, Elbert and Parker Stats December 4, 2010 to December 4, 2011.

  • Average Sales Price = $333,728
  • Expired Listings – Homes that did not sale = 89
  • Sales Range $25,000 to $3,050,000
  • Percent of Sold Price to List Price = 96.49
  • Total Sold Units = 1,728
  • Currently Active 618.

Summary and Opinion of the “New Real Estate Market in the Denver Metro.”

Some people don’t like to see the numbers but I find this pretty fascinating. As mentioned above just a few short years ago we were pushing 34,000 homes on the market with no end in sight.

In the BOOM market of the late 1990’s and early 21’s century were were regularly around the 18,000 homes for sale inventory levels.

So with inventory levels so low are we heading into a new BOOM market? In some areas I believe we will. In some neighborhoods where I used to see a for sale sign every 5th home I no longer see these.

The first day of economics we all learn what Supply and Demand does to a market.

So, what’s the hold up? Credit and Gun Shy! Many recently foreclosed buyers cannot get credit or are so freaked out from their last foreclosure they cannot imaging going through the lending process again.

Interesting Point: If the credit markets loosen up and more buyers gain the ability to obtain credit and inventory continues to fall we could have a nice rush on the market.

Points to Remember: Remember the last market downturn in the 1980’s? The market turned almost over night. I cannot wait to see what is going to happen. Also remember that after the depression of the 1930’s it took 19 years to get home values back to where they were.

Who is buying? Investors are picking up the slack and buying like crazy. They have cash and credit and they know that the rental market is strong. Real Estate investors are cleaning up this market and making a hefty profit from their rentals.

Relocation and sideways home buyers are also smiling all the way into their new homes. Many of the buyers are not necessarily buying bigger homes but making sideways moves into newer and more updated homes.

 

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Steven Beam, Realtor, CRS
303-941-4663
18551 E. Mainstreet Suite 2-A
Parker, CO 80134
Parker Colorado Real Estate

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