It looks like the shrinking inventory we’ve been detailing here is beginning to expand into Denver Luxury homes as well. As we’ve discussed on our blog, the inventory of available homes in the metro Denver area continues to shrink. We’ve seen it in almost all markets and price points, from Denver HUD homes to Denver luxury foreclosures. But now, it appears that the more standard resale luxury homes are experiencing the same problem.
From the Denver Business Journal:
The number of luxury homes available for sale in metro Denver continues to drop, according to a report analyzing multiple listing service data released Tuesday.
There was an inventory of 566 residential homes available for sale in December, down from 650 available in November, according to the report from independent Littleton broker Gary Bauer using Metrolist Inc.data. That inventory level marked a steep 35 percent drop from the 875 available in December of 2010.
Those numbers, culled from the 11-county Denver area, did not include condos. A luxury home is defined as having a price tag of $1 million or more.
The reasons for the shrinking inventory is complex, but one of the main reasons is that those sellers who don’t have to sell, aren’t.
It will remain interesting to watch what this lack of inventory will do to prices, but in areas where we’ve seen diminished inventory for months (i.e. Denver HUD homes) our clients are being forced to bid above asking price to successfully win bidding wars.
if you’re interested in learning more about the markets for Denver luxury homes, Denver luxury foreclosures or just the market in general, give our team a call at 303-726-1874. We can run a market specific report for you so you have the knowledge to make te right decision.
With the low inventory, now may be the right time to sell!