The inventory of homes for sale in Metro Denver has DECREASED by 21% over the last month and a half! What does that tell us? Ordinarily, I would think that the increase was due to the time of year. But, this year, I don’t believe that. Most of the homes that are on the market this year are there because they have to be. For instance, job transfer, divorce, bank foreclosure, etc. These sellers do not have the luxury of being able to decide when they can take their home off of the market to account for the holidays. They have to bear the timeframe and sell now. Therefore, we are seeing less impact on inventory for that reason and more of an impact because of actual sales.
According to Metrolist, 9,495 homes sold in Denver and its surrounding areas since September 30th, 2011. 7,700 sold during the same time last year, that is an increase of over 23%! It shows that sellers are more aware of what is going on in the marketplace and are adjusting to it. They are making the proper moves in order to get to the closing table. I include banks in this as well. Many big banks are bringing in extra employees to aid in shuffling through the backload of bank owned properties and, more importantly, the short sales. Finding a way to adjust to the marketplace is the key to recovery.
Markets are not unlike rivers. As water flows, it encounters obstacles. What does water do then? It finds a way to adjust to what lies in front of it and flows around. The ability to adjust to its forces is what keeps it flowing. It may run into something that slows it down or speeds it up. Sometimes it falls too fast to a sudden crashing boom! It sometimes it slows to a crawl and pools up for a time being. But always at the other end of the pond, is the trickle that continues the water’s journey to the sea. It is important to remember that it doesn’t stop.
Recovery is coming. We flowed down the waterfall, crashed to the bottom, slowed to a crawl, pooled up and became stagnant for a bit, but now we are continuing on…