We are continuing to see record low number of homes for sale in the Denver metro areas. In the last 7 days almost 2X as many homes have gone under contract than have came on the market. Here is a look at the numbers for our Denver Metro MLS from 1/29/2015 – 2/5/2015.
A normal market is about 4 months of inventory (meaning if no new listings came on the market, it would take 4 months to be sold out of homes). Right now we have less than 1 month inventory. Buyers that are worried about buying at the peak of the market need to take the leap and get in the market. Why? Prices can’t go down until inventory gets to about 5+ months inventory……and that will at a minimum take a year or two. In the meantime, prices HAVE to increase. It’s basic economics of supply and demand. It’s not rose colored glasses….it’s just stating the facts. If buyers are waiting for the values to come back down they will be waiting until the ships have sailed.