Thursday, July 19, 2012

Denver area home sales inventory down for 16th month

According to Department of Numbers, the home sales inventory in the Denver area fell year over year in June for the 16th month in a row. The total single-family and condo inventory dropped to 15,250 during June, down 32 percent from June 2011's total of 22,474.

The first graph shows the total inventory for each month since April 2006. (Dept of Numbers data only goes back to 2006.) Inventory appears to have reached a multi-year low in early 2012 and has climbed mildly since then.

The second graph shows that year-over-year declines have been the norm since early 2011. In addition, the magnitude of the declines has been far greater in recent months than was the case prior to 2011.

While the Dept. of Numbers data isn't the most detailed in the world, it does offer additional corroboration to numerous claims by Realtor organizations that inventory is collapsing. This appears to be true, and also appears to be the case in national numbers, such as found in the inventory data put out this week by NAR. 

Meanwhile, as you'd expect in a time of declining inventory, the median asking price has headed upward, increasing 9 to 16 percent each month in recent months. The asking price was up 9 percent from June 2011 to June 2012, increasing from $273,600 to $299,900:

Asking price isn't selling price of course, but this does tell us a bit about people's expectations.