Low Inventory: Buyers Flock to New Construction

Feb 19, 2014

Where have all the listings gone? Why is there so little inventory on the market right now? Why is no one selling? These are the questions our buyer clients are asking us. In order to help our buyers, some of us Realtors® have been joking that we may start going door-to-door knocking to see if anyone would like to sell.

Alaris PropertiesHere are some facts: in most areas of the Denver region, we have the lowest listing inventory that we have had in many years. In January 2013, there were 318 active listings in Evergreen, compared to the 170 this January. Looking at the entire Denver metro region, the low inventory is more drastic. There were only 7,642 active listing in January 2014. This pales in comparison to January 2013, when there were 16,869 listings on the market. The point is inventory is down by approximately 50 percent.

I re-listed an Evergreen home this past Thursday, and we had multiple showings immediately, and received five offers, some of which were over full asking price. As Alaris prepares to list another Evergreen and a Conifer home, we suspect the response will be the same.

In the mountain metro area homes are flying off the market with a rush of showings and multiple offers, when homes are priced correctly. We fully expect this trend to continue because the relief of new construction neighborhoods does not reach Genesee or the Evergreen, Conifer, Bailey and Pine areas. There are only 11 new construction listing in these areas, compared to more than 2,000 in the greater Denver area.

Buyers have little choice but to find a home in a new construction community. Those thinking of selling in the mountain metro area could benefit greatly by doing so now or in the near future as buyer demand drives up the listing price and moves property quickly.

It may surprise you to know that there are 150 new home communities in the greater Denver area. New home builders understand this huge demand, leading to a burst of new construction. With the population anticipated to grow, new home builders are pushing inventory onto the market as fast as possible.

We are excited to see how this market changes with the classic battle of supply and demand. Call me with any questions about the market or to interview me about listing your home.

– Jon Terry, CMAS, JD

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