According to a recent survey from Zillow, the supply of homes available for sale is rising across the country this summer, and metro Denver is seeing some of the biggest increases anywhere. Nationally, the inventory of homes available for sale jumped 3.1% in June from May, Zillow found. But in Denver, the inventory rose 10.3%, which tied for the second-largest increase with Buffalo, N.Y. Milwaukee saw the biggest with a 24.2% spike in June.

Demand still outweighs supply, and the extra inventory has yet to bring down home prices, which were rising at a 17.9% annual rate in June in Denver and 15% nationally, according to the Zillow Home Price Index. Denver’s above-average increase reflects just how tight the supply became. The inventory of homes for sale remains down by nearly half from June 2020 levels, according to Zillow.

Jeff Tucker, senior economist at Zillow, said another month of rising housing inventory gives buyers some additional options and a little more bargaining power. While the level of inventory remains incredibly low by historic norms, it is now on a trajectory that should give buyers reason to hope for a cooldown in price growth this winter, consistent with normal seasonal trends.

With COVID-19 vaccines more common and cases down significantly, sellers have become more comfortable listing their homes and opening them up for open houses and tours.

Additionally, according to the Mortgage Bankers Association, the share of U.S. mortgages in a forbearance agreement, which allowed borrowers to skip payments because of the pandemic, dropped from 3.75% on July 5 to 3.5% on July 11.  It is down from 7.7% a year earlier. One way some people try to catch up on missed payments, about 7.5% of the total, is by selling their homes or refinancing their mortgages, according to the MBA.

A spokesperson from the MBA indicated that from everything they’ve seen, inventory gains are primarily coming from more people being comfortable putting their home on the market (post-COVID restrictions), more homeowners looking to take advantage of the hot market, and/or homeowners trading up to a larger home/moving to another area.

If you’re in the market to become a homeowner this year, now could be a great time to start your search. Contact Metrowest today – we’d love to discuss your options!