The Story of Inventory is a key factor in the theory of supply and demand. We all know that, right? Higher inventories mean that there is lower demand, this pushes prices down. As demand increases, supply drops and prices increase to catch up with that new demand. I have been watching inventories of single family homes in the Metro Denver area for years. I have been selling real estate around here since 1992. So, I have seen it all at this point. I have seen the number of homes for sale be under 3,000 and all the way up to over 26,000! Well, today the amount of homes currently for sale in Metro Denver is 11,506. What is significant about that? It is 30% lower than it was this time last year! That is significant. That is considerably less and can bee attributed to a few factors. Less foreclosures, less bank owned and HUD properties, less workers being transferred, etc. But it is also due to the fact that homes are selling again. Yep, that’s right, I said it. That is something that you don’t hear this on the evening news. The market is horrible, right? Housing is evil, right? The American Dream is not home ownership anymore, it is renting a home and covering your landlord’s debt, that’s the new American Dream, right? That is what we hear on the evening news, at least. Well, guess what? That’s wrong. The number of homes sold for the month of October was 2,483. That is up 8.9% from last October. Almost a double digit increase in a month that is supposed to be a “dead month” for sales! Seems to me the demand is still there for the true American Dream.
So I don’t believe what the newspeople want me to believe. I like to look to the source. It tells a more accurate story.
Based on MLS data as of November 08, 2011