One year ago the number of closed transactions (DEMAND) was down 6.4% and the number of active listings (SUPPLY) was up 5.2% over the prior year in metro Denver.
But the story is different this year! Demand is up and supply has dropped! For January 2012 the number of closed, single-family transactions is up 15.6% and the number of active listings is down 39.1%. The supply of available properties has steadily declined over the last 12 months and the demand is now ticking upward. While it is too early to call the increase in demand a trend it is a clear shift from the previous year.
We see the same pattern for multi-family properties (condos and town homes) with the demand up 10.4% and supply down 50%.
The decreased inventory of available homes is enough to put upward pressure on property values and if demand continues to increase, the market should see measurable increases in value in the not-too-distant future. We shall see what the coming months bring as we move into the “buying season.”
Let me know if you would like to discuss the dynamics of the real estate market where you live.