According to a recent analysis from LIV Sotheby’s International Realty, Metro Denver, a handful of key indicators are pointing toward recovery rather than relapse in the Mile High housing market. While regulated lending practices and fixed mortgage rates are two major factors, the balance between supply and demand is even more important.

Shannel Ryan, President of LIV Sotheby’s International Realty, Metro Denver notes that the whole Denver Metro story really comes down to the relationship between supply and demand. She added that home buyers in Denver are grossly undersupplied and have been for years.

According to data from the Metro Denver Market Review, in June, active inventory for single-family detached homes declined by 16.4% month-over-month, with 3,343 units for sale. Despite the lack of inventory, pending contracts jumped up 7.2% from May to June. The imbalance in supply and demand has buyers competing for a small inventory of homes, in which 35.6% of listings on the market closed for over asking price and drove overall prices upwards.

A balanced market is generally thought of as having a six-month supply of inventory, though Denver’s average inventory is lower than national numbers, with an average 4.5-month supply. To give some perspective, there is currently a 0.8-month supply of available homes in Denver Metro. The available inventory also varies by neighborhood. For example, the LoDo market has more than six months of inventory, which creates more opportunities for buyers than sellers.

While economic uncertainty is still a factor, Denver’s real estate scene isn’t showing many signs of cooling down. If you’re thinking of becoming a homeowner give Metrowest a shout today – we would love to help you start the process