We now measure inventory levels in terms of days.
Typically we measure in months. For instance, a “balanced market” is when there is 4 to 6 months of inventory currently for sale. Meaning that, in a balanced market, it would take 4 to 6 months to sell every home that is currently on the market.
Anything less than 4 months is a seller’s market. Certainly, when we measure in days, we are in an extreme seller’s market.
Today the Greeley market has 18 days of inventory, Fort Collins has 27 days, Loveland has 30, and Windsor has 51.
These are all lower than a year ago. For example, Greeley at this time last year had 27 days of inventory.
But this statistic can be misleading. Sometimes people assume that the extreme seller’s market applies to all price ranges and all locations.
Not true. When we drill down we find sub-patterns that are revealing. For example, homes in Loveland priced over $500,000 have 3 months of inventory and homes in Fort Collins over $750,000 have 5 months.
Because inventory levels tend to increase as prices increase, there becomes a distinct advantage for the move-up buyer. Today, many people can sell in an extreme seller’s market and move up to a price range with less competition and more selection.