What Does The Denver Housing Inventory Drop Mean To You?

The available housing inventory has continued to drop every month since last April. So, what does this mean to the buyers and sellers in the Denver market?

What it means is that the Denver housing market is improving. Whenever supply goes down and demand goes up, the supply (homes) will start going up in value. We have already seen a firming up of the lower priced homes throughout much of Denver. The market conditions for homes priced under $200,000 has already switched from a "Buyer's Market" to a "Balanced Market" - and in some communities; a "Sellers Market". An example of this is one of my buyers wrote an offer on a bank owned home and to my buyer's amazement, the bank countered only $1,000 off of their asking price. The bank knows the value of the home (they sure seem to be selling a lot of them recently) and they know the market is firming up quite well in the price range. Although the home is sitting there vacant, they are in no apparent hurry to drop their price to make this buyer happy.

Next year will be a much stronger one for Denver's housing market. Available home inventory continues to drop and prices seem to be firming up too.