By definition, a real estate market is balanced when there is 4 to 6 months of inventory currently for sale.
Anything less than 4 to 6 months means a Sellers’ market, anything more means a Buyers’ market.
For example, if there are 1,000 closings per month in a market, the market would be balanced if 4,000 to 6,000 homes were available for sale.
Here is a staggering stat for you…
At the current pace of sales, the Front Range market would need 6 to 7 times more inventory for the market to be balanced.
This is why we don’t see any sort of significant market correction or anything resembling ‘the market crashing.’ Bottom line, the market is still undersupplied.
Here are the numbers:
• Larimer County has 441 properties for sale and would need 2,200 to be balanced.
• Weld County has 322 properties for sale and would need 2,000 to be balanced.
• Metro Denver has 3,023 properties for sale and would need 20,000 to be balanced.