By Dr Denver H. Bubble
Could this be the moment we have been waiting for? The metro Denver area experienced a roughly 25% increase in the homes available for sale in May from April. Housing inventory on the market reached 6,437 up nearly 9% year over year and the highest reading for May in nearly 3 years. Steve Danyliw, chairman of the association’s market trends committee, who we have interacted with in the past, said "I don’t see a bubble any time soon, but keep an eye on inventory." We disagree about the bubble and think that could be the beginning of the beginning of the end of the bubble. Home buyers also saw another favorable trend with the median price of a single-family home dropping almost 1% from April to May to $451,000.
Housing on the market is still rapidly turning over. Single-family listings spend an average of 20 days on the market, down 9% from April into May. For condos, the average was only 16 days, which is 16%lower than in from April into May. If this metric starts to increase with houses and condos sitting on the market for longer, we would increase our certainty around the home buyer seeing some relief in the market. We still have two favorable metrics with the increasing housing supply and drop in median prices that have appeared, and this is supposed to be the busy spring season.