Denver’s Home Inventory Has Been Small – Have you Noticed?
If you’ve been in the market to buy a home recently, you’ve likely noticed that it’s been somewhat difficult. Your agent sends you homes, you fall in love with one, then the next day it’s under contract and you have to start all over again. It can be a frustrating process. Well, it turns out there’s a reason. Denver has an incredibly low inventory of homes on the market.
So low, actually, that Denver has the second lowest inventory for homes on the market in the country. RE/MAX did a study and found that San Francisco has a lower supply of unsold homes, at about a 1.5-month supply; Denver has a 1.6-month supply. To put that in perspective, the national average is a 4.3-month supply. What’s interesting is that that Denver’s 1.5-month supply is actually the highest it’s been all year. This study found that for homes priced from $100K to $300K, there’s a less than three-week supply. For homes over $2 Million, there’s a 17.1-month supply.
This could be related to a study that Zillow just published indicating that rent in Denver is “very unaffordable.” Their conclusion stems from the fact that, on average, people are paying 30% of their income on rent. If renting is too expensive for the community, it stands to reason that they’ll buy; this would explain the low housing inventory.
Hopefully, searching for homes will become easier as the inventory continues to grow. This is why they call this a “seller’s market”; if you have a home to sell, it’ll sell. If you’re looking for a home, it’s either going to take a while, or you’re going to have to decide what you can and can’t live with because you can’t be too particular.
My company, Kentwood, has this super cool widget on our homepage. It updates every 30 minutes and shows you how many new listings, under contracts, price reductions, sold listings, and total listings in the Denver metro area there are at that time. You can sign up and it’ll send you updates. How cool is that?
So while it may be difficult to find the house that checks every box you have, the good news is that if you want to sell your house, there are people out there who want it. The buying market is getting bigger and Denver has plenty of super sweet neighborhoods. So if you’re in the market, you’re going to find something pretty cool.