According to Department of Numbers, the home sales inventory in the Denver area fell year over year in February for the 24th month in a row. The total single-family and condo inventory dropped to 9,959 during February, down 28.5 percent from February 2012's total of 13,945. February 2013's inventory total was the smallest total recorded since Department of Numbers began collecting inventory data in 2006.
The first graph shows the total inventory for each month since April 2006. (Dept of Numbers data only goes back to 2006.)
The reasons behind the declining inventory can be varied. One factor that Realtors report is the fact that many homeowners who would like to sell their homes cannot qualify for a new mortgage so must stay put. This keeps many homes off the market. Also, as the Corelogic report in underwater mortgages recently showed, 17 percent of homes with mortgages in Colorado are still underwater, and that discourages home sales as well.
Meanwhile, as you'd expect in a time of declining inventory, the median asking price has headed upward, and has increased year over year for the past 19 months in a row. During February, the asking price was up 8.3 percent year over year, increasing from $277,000 to $300,000.