Home Inventory Starting to Rise after Years of Declines

monopoly houses jpgNumber of Homes for Sale Increasing Slowly…..
As you probably know, the last couple of years have seen a big turnaround in the housing market. We all hear about multiple offers and houses selling over list price, etc. This has all been fueled by the amazingly few number of  homes for sale – Low Inventory!

To put this in perspective, consider this comparison for the Denver metro area:
Number of Homes for Sale Mid-Year:

2006 – 29,700
2014 –    6,600

Pretty stunning statistic! Of course inventory fluctuates during the course of any year. Housing inventory is lowest in December and highest around June. But what we’ve been seeing is an overall decline in inventory levels year over year for the last 8 years. Until…last month!

June 2014 was the first month in years in which the number of homes for sale in Boulder County was about the same as it was for the same month in the prior year. In recent years, inventory levels were running about 20% less than the year before. As an example, lets look at April compared to June:

April 2013 – 1584 homes for sale
April 2014 – 1302
homes for sale

June 2013 – 1599 homes for sale
June 2014 – 1588 homes for sale

Over the course of a couple of months we went from having 280 fewer homes for sale than last year to about the same number of homes for sale as 2013. That’s a big change! July had a similar statistic. The question is….will that trend continue? You have to think it will. What goes up must come down and vice versa. There’s really no place else for inventory to go but up.

Looking ahead, inventory levels always drop in the fall and winter and start to pick up in January. So, we probably won’t notice any dramatic increase in the number of homes for sale over the next few months. But if this trend continues, we will see some bigger changes next spring including: More homes for sale; price increases leveling off; bidding wars dying down and so on. The glory days for sellers only last so long. Buyers will then have an easier time purchasing homes and they’ll have to hope that interest rates remain kind to them. Time will tell!

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About Tom & Beth White-O'Connor

We've lived in Boulder and the surrounding mountain area for over 23 years. We're Realtors at The White-O'Connor Team, Coldwell Banker Residential Boulder. Tom loves to write, play music, look at houses and find great house deals! Beth can fix anything and she loves house design and remodeling. Our house is a testament to her creativity. We have a daughter in San Diego who gets to ride horses for a living. Our two cats and the most amazing 16 year old dog in the world keep us company at home. Give us a call at 720-276-0826 or 720-366-6196 if we can help you Buy or Sell a home or find a great rental property. Best, Tom and Beth.
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