As the chart above clearly details, Denver Residential Inventory had dropped by 50% over the last 5 years, and gives every indication that the trend is going to continue. Why you ask? I’m here to suggest several reasons:

• New Build Home Permits are at all-time lows
• Availability of low interest long term loans returned
• Many sellers sitting on the sidelines
• Denver Region is growing jobs
• In bound lifestyle moves to Denver from both coasts fueling demand
• Few people have left the region during this recession effectively stabilizing this market
• Forecast by DRCOG for population growth over the next 20-25 years

Now even if this list is only a little bit factual, in aggregate, there has clearly been a compounding effect that is influencing supply. Pundits will broadcast ideas like “shadow inventory”, first sign of appreciation, sideline sitters will flood the market and builders are ramping up to capture all the new out of town buyers.

Even is some or all of that is true, these ideas will not have enough of an impact to turn this trend line upward very quickly. This means, rates are fueling a great trend for the future of the Denver market. Buy now before you have to kick yourself!

Don’t forget to familiarize yourself with the 2011 Year End Denver Market Watch.