The Denver Post had an article recently about the low inventory in the metro Denver real estate market: “Metro Denver Struggles with a Record Low Supply of Homes for Sale”, dated February 13, 2015.
They are feeling a bit “gloomy” about the whole matter.
If you are a regular reader of the CHR Buzz, the news of low inventory comes as no surprise to you.
The Denver Post was accurate about the historically low inventory. However, they failed to comment on the cause. The cause is not a DECREASE IN SUPPLY. In fact, about 3% more properties have changed hands in the first 45 days of this year versus the same period last year.
The cause of the low inventory is a significant INCREASE IN DEMAND, which causes the slightly increased supply to get sucked up as soon as it comes on the market.
There is good news in these supply & demand patterns!
The increased demand is a sign of a healthy economy. In addition, agents are finding ways for buyers to be successful in spite of the low inventory challenge as evidenced by more sales actually occurring so far this year.
We don’t want you to be depressed!
Courtesy of Mike Cooke, Colorado Home Realty (c)