There is a common misconception (and I even bought into it) that inventory dramatically increased this spring because of COVID-19 and that it was more than previous years. I WAS WRONG!
If you look at these charts (and you can click on them to be directed to an interactive module), March, April and May 2020 numbers for new and active listings are about the same as years prior. We are NOT seeing a flood of new properties on the market.
With months of inventory, which is our indicator of supply and demand, we see that in April we are at 4.2 months which is quite low. A balanced market between buyers and sellers is about 7 months of inventory.
It does “feel” like there are a lot of new listings in our market and a lot of price reductions, but in actuality, it’s about the same as previous years. What we are noticing is that there is a slight bump in the inventory v. buyers since less buyers have been coming to the mountains to shop for real estate. Expect that to change as more buyers enter the market this summer.
New Listings Dynamic Graph