Denver’s real estate market is showing signs of a precipitous shift from a buyer’s market to a “normal” market, according to a newly released report by Jack O’Connor, Managing Broker of Prestige Real Estate Group and a widely read industry analyst.
The shift is evident, O’Connor reported May 5, in the continued drop of market-wide inventory to just over 27,000 homes, down from peak levels of 2006; as well as in the market’s supply of homes, now indicated at just over seven months of supply. Traditionally, a buyer’s market is defined by a supply greater than eight months. A seller’s market, one with high demand where sellers have flexibility in pricing their homes, is defined by a supply of less than six months.
“What we’re seeing is a return to a normal market in Denver,” said Leeann Iacino, President of Prestige Real Estate Group, in releasing the report. “This is further evidence of the countercyclical performance of Colorado’s market, which went into a post-911 slowdown faster than other national markets, and now appears to be recovering faster, as well.”