Nationally, inventory – the number of homes for sale – has been falling for a long time and was at historic lows during 2020 and then fell even further in 2021. Inventory was meager, but demand increased. The increase was due to various factors, including record-low interest rates, a desire for more space, and a frenzy that made some buyers feel like they may be shut out of the market forever if they didn’t purchase a home.
In the Denver area, inventory has increased substantially in the last couple months. However, we inventory here has decreased over the past decade like it did in the rest of the country. In July 2010, more than 24,000 homes were for sale. We haven’t seen that many homes for sale since. Since December 2019, even before the pandemic, there hasn’t been a month with more than 10,000 homes for sale. There were only 8,663 homes for sale last month. That’s up significantly from February 2022 when there were 2,317 homes for sale.
If you’re wondering why prices have risen year-over-year, the lack of inventory explains it.
When demand was very high, homes were getting multiple offers, and bidding wars were common. During 2020 and 2021, we submitted offers for some clients on homes with more than 25 other offers!
Things have certainly changed. Nationwide, according to National Association of REALTORS® , homes listed for sale in August received an average of 2.5 offers, down from 2.8 in July and 3.8 in August 2021. This number of offers is typical compared to most years.
Buyers have more to choose from and less competition, which would typically make it a great time to purchase a home. Rising interest rates, though, have made it challenging for many buyers, despite prices being lower than they were a few months ago. But, of course, rents are high, too, which makes purchasing attractive to many.
Buyers are still out there, but they are shopping very carefully. The continued lack of inventory means selling a home relatively quickly and at a reasonable price is still possible. However, sellers must understand that pricing a home based on where the market is (and where it’s heading) is crucial now.
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Metro Denver Real Estate Market Activity
During the last week:
New Listings – 1327
Back On Market – 337
Price Increase – 81
Price Decrease – 2065
Pending – 1169
Withdrawn – 265
Closed – 1108
Expired – 292
New Listings – 1300
Back On Market – 368
Price Increase – 98
Price Decrease – 2001
Pending – 1194
Withdrawn – 273
Closed – 1378
Expired – 525
Based on data from REColorado®
Trends in Metro Denver
- Home Prices
- How Long It Takes to Sell a Home
- Prices Per Square Foot
- Showings Until Pending
- Active Listings
- New Listings
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“My husband and I have been buying and selling rental properties for about 10 years. We have been using David Lampe and Tom Grant as our real estate agents, both for buying and selling properties. Their level of expertise is exceptional. Even when you think a sale may not go through they always seem to find a creative solution. We enjoy doing business with them also because they are very efficient, friendly and pleasant.”
– Helen T., Lyons