Number 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!