Denver had the second lowest inventory of unsold homes in the nation in July, according to a national report by RE/MAX.
Denver had a 1.7-month supply of unsold homes last month, according to a report released Thursday the Denver-based real estate company.
Only San Francisco, with a 1.5-month supply, had a lower supply of homes, shows the RE/MAX National Housing Report that tracks MLS data in 52 metropolitan areas across the country.
The RE/MAX analysis was consistent with an earlier one from the Denver Metro Association of Realtors, which showed 1.66 months of inventory at the end of July in the 11-county area.
A six-month supply is considered one in balance, in which supply and demand are in equilibrium, according to RE/MAX and most real estate experts.
Despite having fewer than a two month inventory of unsold homes, July was the largest inventory so far in 2014.
Indeed, in four of the seven months, the Denver metro area had less than a one-month supply, according to RE/MAX, although some brokers said that seemed too low.
In July 2013, Denver has a 1.6-month supply of unsold homes, according to RE/MAX.
As in Denver, nationally the supply is growing slowly.
“The inventory environment continues to improve,” according to the RE/MAX report.
“The inventory of homes for sale in July was just 1.1 percent lower than June and 3.5 percent lower than last July. For seven of the last eight months, year-over-year inventory reductions have been less than the previous month.”
However, Denver has a much more acute shortage of homes for sale than most markets.
Nationally, there was an average of a 4.3-month supply of homes available last month, up slightly from 4.0 months and 4.1 months in July 2013 and June, respectively.
However, inventory levels vary greatly, depending on the price range of the homes.
In the Denver area, there is less than a three-week supply of homes priced between $100,000 and $300,000, according to DMAR.
For homes priced at $2 million or more, there is a 17.1 month supply of homes, shows DMAR’s analysis.