In the midst of challenging economic times, an interesting trend has been developing in the Metro Denver residential real estate market, over the last year. The supply of available homes in the metro area has been steadily declining. Year over year comparisons, between 2010 and 2011, show a consistent reduction in the available inventory of single family homes (graph A), since January 2011.
Metro Denver Active Listings (Graph A)
Equally compelling is the sold rate of single family properties, in 2011, when compared to the sold rate, in 2010 (graph B). When analyzing the volume of sold houses between 2010 and 2011, it is evident the Home Buyer’s Tax Credit in 2010 affected the number of sold houses in during the spring and early summer months. Which resulted in a sharp decline of sold volume after the expiration of the tax credit.
Metro Denver Sold Properties (Graph B)
However, overall sales volume in 2011, is just slightly below the number of sold properties in 2010. While the overall real estate market and economic health remains tenious, at best, there appears to be a diverging trend between supply and demand. Recently, there has a been a shortage of available homes well positioned in the market place. Buyers are quick to act on homes offering a “sense of value” – meaning houses appropriately priced in the market for what they have to offer.
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