According to a Zillow survey, the supply of homes available for sale is increasing nationwide this summer, and Metro Denver is seeing the biggest growth anywhere.
Nationally, the list of homes available for sale jumped 3.1% from May to June, Zillow found. But in Denver, inventory rose 10.3%, tied for the second biggest increase with Buffalo, NY, the biggest gainer coming in Milwaukee, which saw its inventory spike 24.2% in June.
“Another month of rising housing inventory gives buyers some additional options and a little more bargaining power,” said Jeff Tucker, Zillow’s senior economist in the report. “While inventory levels remain incredibly low by historical norms, it is now on a trajectory that should give buyers reason to expect prices to drop this winter, in line with general seasonal trends.”
According to the Zillow Home Price Index, demand still exceeds supply and excess inventory has yet to turn the skyrocketing trajectory in home prices, growing at a 17.9% annual rate in Denver in June and 15% nationally in June. was.
Denver’s rise above average partly reflects how tight supply had become. According to Zillow, the list of homes for sale has dropped to almost half of June 2020 levels.
With COVID-19 vaccines becoming more common and cases decreasing significantly, vendors have become more comfortable listing their homes and opening them up for open houses and tours.
In addition, the share of US mortgages in a forbearance agreement, which allowed borrowers to skip payments because of the pandemic, fell from 3.75% on July 5 to 3.5% on July 11. This is down from 7.7% a year ago. Mortgage Bankers Association.
According to MBA, one way some people try to catch up on missed payments, about 7.5% of the total, is by selling their homes or refinancing their mortgages. But that’s not likely what is moving the supply needle.
“From what we have seen, the inventory gains are mainly coming from more people who are comfortable putting their home on the market (post-COVID restrictions), more homeowners wanting to take advantage of the hot market. are, and/or homeowners moving to a larger home/area,’ said MBA spokesman Adam DeSanctis in an email.