As we ROLL (Not) into 2022, I’m going to take a guess. “What’s the market going to do?” is everyone’s question at hand. One year ago, I wrote this…
“Participating in the acquisition of a residential purchase has its challenges. From the early stages of qualifying to the late stages of time spent at the “closing table”, by now, I think we have “seen it all”. That, however, is never true. There is always something over the horizon we’ve never seen before, coming our way. Maybe that’s what keeps this business so interesting thus keeping our interest, who knows? We love it, and we love serving our Clients and Customers “every step of the way”. There is one thing for sure, the sun does always come up tomorrow….”
Well the more things change… Let’s do this right now.
|New Listing (531) This is a clear indiction of continues supply shortage!|
|Coming Soon (122) This is below what we need to balance things out for the buyer.|
|Back On Market (116)|
|Price Increase (193)|
|Price Decrease (157)|
|Pending (1027) Hard to believe the buyer can still find this much inventory!|
|Closed (1037) Once again, where is this inventory being found. Buyers have it rough!|
With this graphic we can only conclude, 2022 will follow along in the same tracks as 2021, but wait, there’s more. 2022 has some headwinds 2021 did not face. 2021 Had extremely liberal monetary policy. In 2022, rates will be higher. It’s that simple.
As we start the year with little over 1,000 Active Listings, Rates will have to increase even more to build inventory to a level considered favorable to buyers. That’s correct, we are starting 2022 with 1,017 active Single Family listings in the 11 counties. That is an extreme shortage when considering this geographic boundary represents about 3.25M people.
Why is the supply so low? Millennials are creating families, Boomers are “aging in place”, Xers are moving up, and new construction where consumers want to live is well above average prices for the area. So, what does this mean? The Sky Is Not Falling, but don’t get caught with your pants down, and please don’t do what “Stupid” does!
Give us a call, we’ll put you on the right track as your Trusted Advisors.
Dee & Tom
Kentwood Real Estate
4949 S. Niagara St. #400
Denver, CO 80237