Buyers were no doubt hoping that the “spring selling season” would bring an increase in homes for sale following a winter of too many buyers competing for too few listings. While it’s true that more homes are being put on the MLS, the sad truth for buyers is that more than half those new listings are going under contract immediately, resulting in a decline in active listings on Denver’s MLS.
At the end of April, REcolorado showed 7,087 active listings. Despite the addition of 7,015 more listings during May, there were only 6,676 active listings at the end of May.
In Denver itself, 1,548 homes were added to the MLS during May, but by month’s end there were only 1,378 active listings, down from 1,434 at the end of April, with 1,887 homes under contract. More than half were under contract in 5 days or less.
In Jefferson County the figures are similar — 1,111 listings were added during May, but by May 31st there were only 878 active listings, down from 1,002 at the end of April, with 1,424 homes under contract. Again, median days on market was only 5.
This lack of active listings despite nearly a doubling of new listings was predictable. In mid-January I had a listing which drew 125 showings and 19 offers in four days, selling for 15% over listing price. Clearly, with 18 losing bidders plus countless others who didn’t even submit a contract, it would take a long, long time for those losing bidders to get a home. Therefore, any new listings would likewise get snapped up as soon as they appear on the MLS. And with so many out-of-state buyers moving to our area and new home builders not keeping up with demand, it’s hard to predict when the inventory of active listings will rise.
Published June 2, 2016, in the YourHub section of the Denver Post.