Real Estate News: What’s with the low inventory?
Over the past few months, I’m sure you’ve heard about our low inventory and believe it or not, we’ve just hit a new low.
At the end of January, we only had 1.2-month supply of single- family homes on the market, which according to Colorado Association of Realtors (CAR), is a 29.4 percent fall from 1.7 months in January 2015.
The inventory of unsold condos and townhomes were even tighter – a whopping 0.7-month of supply! A 41.7 percent fall from a 1.2-month supply in January 2015.
What this means is if buyer demand remained the same and no new homes or listings were added to the market, our inventory would be all gone in three weeks.
Generally speaking, winter does not supply a high number of homes for sale so it’s a factor that our inventory is low. It is a possibility that our numbers will rise a little in spring and summer. However, it’s not likely that there will be a high jump of additional listings.
So at the moment, buyers are in multiple bidding wars, much like last spring and summer, where they are willing to bid higher than asking price.
A situation like this is, of course, great news for sellers, as prices will likely continue to rise. On the other hand, sellers are also buyers. Sellers can sell their homes at top dollar but they also have to pay a high price for a replacement home especially in Colorado. However, as spring approaches, it’s likely that sellers will take advantage of the strong market and list their homes.
According to CAR, this is lowest months of inventory since at least 2010.
Although bleek in numbers, there’s always a sunny side. We had gone over year-over-year statistics a few newsletters ago and about 3,000 new single-family home listings were added in January, a 3.5 percent year-over-year increase.
The average sales price of a single-family home rose 11.5 percent to $405,929. The average price of condos and townhomes jumped 16.3 percent to $270,215. The year-over- year median price of a single-family home rose 10.3 percent to $344,000, while the median prices of condos/townhomes at $215,000 rose 15.4 percent.