According to Department of Numbers, the home sales inventory in the Denver area fell again in September, dropping 28 percent to 14,300 homes. September was the 19th month in a row during which the inventory has fallen year over year.
Unfortunately, the Department of numbers data only goes back to 2006, but the Denver-area inventory was 37,600 during July 2006. the first graph shows the decline in inventory over the past six year:
During September 2011, the inventory was 20,064.
So far this year, single-family building permits are only up about 35 percent from last-year's very low numbers, and population in-migration continued to be solid through 2011. So unless home building picks up significantly or in-migration lessens significantly, the home sales inventory is likely to continue to be tight.