Erickson Realty Market Update: Inventory shortage

Good afternoon everyone! I'll keep it brief. You may have heard we're facing an unprecedented shortage of homes in the Colorado housing market, and it truly is unlike anything I've seen during my real estate career. 2021 has already seen clients write on properties with 30+ offers on them, 15 minute showing windows are becoming the norm due to demand, and sellers are increasingly dictating the terms of the offers they receive. I've also had the fortune (on the listing side) to deal with agent buyers from even hotter markets who write the kinds of offers it takes to win a property in places like Seattle. 

Today as I was updating my listing presentation, I decided to replace a dated graph of the inventory in NoCo with a screen grab from today. I'm not sure what I expected, but I was stunned to see the shortage expressed visually. I've attached it below, and you can look at that very graph live (and a bunch of others) at https://www.ericksonrealty.net/stats. Bottom line, inventory is hovering around .7 months in Larimer county. That means if all sellers stopped listing their homes it would take three weeks to exhaust every home for sale. That's ALL homes - every Senior Living 55+ manufactured home in Sunflower (better get your fake IDs going, folks) to the seven homes currently listed between $3mm - $15mm. By comparison, a balanced market should have around three months of inventory.

What does that mean for you? If you're looking to buy we are working harder than ever to dig up off-market opportunities, and we are also looking into bridge options that will enable buyers who need to sell their homes to forego the home-sale contingency. Investor queries are welcome, as real estate remains a safer bet than, say, Dogecoin (even though I bought a bunch). 

That's it for now, thanks for reading and as always please reach out with any real estate needs!

Originally published March 9th, 2021