The most misleading stat about the housing market is increase in inventory.The number of properties for sale is up significantly compared to last year. In most locations along the Front Range, inventory has doubled. This is obviously great news for buyers because they now have more choice. This is obviously meaningful for sellers because they now have more competition. But, it does not mean there is a glut of inventory. It does not mean that we are now, all of a sudden, over-supplied. Quite the contrary. The market is still undersupplied. There would need to be at least double the amount of homes for sale for Front Range real estate to begin to be balanced. The increase in inventory, being so large, gets a lot of attention in the media and can sometimes be taken the wrong way. Yes, inventory has doubled. But, it has doubled compared to all time lows. Freddie Mac reports that Nationally, the market is undersupplied by 3.8 million housing units. So, the increase in homes for sale is a good thing for the market and is nothing like a glut of inventory.
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Other • December 2, 2022
by Natalie Parsons
Other Not What Many Thought Despite higher interest rates, prices did not decrease like many people thought. They certainly have not crashed like many thought. Average prices along the Front Range have seen only a slight decrease versus last year. The average price in May this year has decreased versus May of last year by: 2.5% in Larimer County […]
Fun Facts Months of Supply As measured by months of supply, we have a strong Seller’s market in Northern Colorado. Both Larimer County and Weld County measure at 1.6 months of supply. That means, at the current pace of sales, it would take only about 6 weeks to sell all of the existing homes for sale. The measurement becomes even […]
Fun Facts More News Nationally, new home inventory as a percentage of the total inventory just hit a record high. 26% of all properties currently available for sale are brand new homes. To put this in perspective, in 2018 it was 14%. From 2000 to 2008 it bounced between 10% and 15% Locally, we notice even higher numbers. In […]