Inventory a Problem as Buying Season Approaches

A third consecutive month of increases in the number of homes coming onto the market in February was not significant in impacting the overall inventory of homes statewide which hit a six-year low.  The number of single-family homes added to the market in February (6,938) was an increase of 11 percent over January but still 4 percent below February 2015.  Similarly, the 2,009 condominiums and townhouses that first became available last month were 10 percent better than January but no better than a year ago.

The 14,690 single-family homes and 3,608 condominiums/townhouses actively listed for sale during February represented 2-months or less supply in each category.  That’s a drop of more than 32 percent when compared to February 2015 and -10 percent over January of this year.  Experts agree that a 5-7 month supply is ideal in creating a balanced market in which both sellers and buyers are on equal ground.

The present inventory issues will likely spur another round of competitive bidding, offers above asking price, cash deals and quick sales that will leave many buyers frustrated.

Sales were relatively weak in February, up 2 percent for 4,608 single-family homes and +1 percent for 1,486 condominiums/townhouses compared to a year ago. The median price of homes continued to rise, reaching $310,000 for a single-family home (+9 percent versus February 2015) and $228,000 (+14 percent over a year ago) for a condominium/townhouse. In most areas of the state, condominium/townhouse sales outperformed single-family.

Rising prices and low inventory are affecting affordability, making homes anywhere from 3 to 17 percent less affordable today than a year ago.

For the full reports on each region, please visit:  www.coloradorealtors.com/colorado-regional-statistics/

In the Metro Denver Region (Denver, Jefferson, Adams, Arapahoe, Broomfield and Douglas counties) sales of single-family homes declined 1 percent in February over January and were 2 percent behind February 2015.  Condominium/townhouse sales, however, rose 10 percent from January to February and were up 3 percent over a year ago.

In the Mountain Region (Garfield, Grand, Gunnison, Jackson, Pitkin, Routt, San Miguel and Summit Counties) sales of single-family homes improved in February by 15 percent over January and were 12 percent ahead of February 2015.  Meanwhile, condominium/sales dropped 15 percent from January to February and lost 12 percent compared to a year ago.  This was the only region in which single-family sales were stronger than condominium/townhouse sales.

In the Northeast Region of Colorado (Boulder, Larimer, Logan, Morgan and Weld counties) sales of single-family homes increased 12 percent while condominium/townhouse sales rose 16 percent over January.  Compared to February 2015, single-family was 2 percent lower and condominiums/townhouses was 16 percent lower.

In the Northwest Region of Colorado (Delta, Hinsdale, Mesa, Moffat, Montrose, Pitkin and Rio Blanco counties) condominium/townhouse sales were strong whereas single-family home sales slipped.  Compared to January, sales of condominiums/townhouses were 100 percent better in February than in both January 2016 and February 2015.  Single-family home sales dropped 8 percent compared to January and were -15 percent compared to a year ago.

The Southeast Region of the state (Baca, Chaffee, Crowley, Custer, El Paso, Fremont, Huerfano, Las Animas. Otero, Pueblo and Teller countries) enjoyed increased sales in January with condominiums/townhouses outperforming single-family homes.  Sales of condominiums/townhouses increased 17 percent from January to February to 136 units and were 30 percent better than February 2015.  Single-family home sales (1,040) were 1 percent better in February and 15 percent better than a year ago.

In the Southwest Region of the state (Alamosa, Archuleta, Conejos, Costilla, Dolores, Hinsdale, La Plata, Mineral, Montezuma, Saguache and San Juan counties) sales of single-family homes were 29 percent lower in February than January of this year and lagged 25 percent behind sales at this time last year.   Condominium/townhouse sales were unchanged from January to February and at the same level as they were in February 2015.

The Colorado Association of REALTORS® Monthly Market Statistical Reports are prepared by 10K Research and Marketing, a Minneapolis-based real estate technology company, and are based upon data provided by Multiple Listing Services (MLS) in Colorado.  The October 2015 reports represent all MLS-listed residential real estate transactions in the state.  The metrics do not include “For Sale by Owner” transactions or all new construction.

For the full reports on each region, please visit:  www.coloradorealtors.com/colorado-regional-statistics/