Many Months of Inventory [Analysis]

From the latest Silver Fern Report, here's a different look at how local real estate markets are fairing.

The chart above shows months of inventory in Boulder and surrounding areas. It's calculated by taking average sales volume from the last 3 months divided by inventory, the reciprocal of which equals months of inventory. The data set ends in September, so the chart above is essentially painting a picture of the market at the end of the summer/early fall.

As you can see, inventory in Boulder is approaching 10 months. Attached dwellings appear substantially better - about 7 months of inventory, but keep in mind that there's much larger shadow inventory for condos and townhomes (from developments like the Peloton, among others). Broomfield, Erie, Lafayette, and Longmont are all running about 5 to 6 months of inventory -a level considered healthy by experts. Louisville and Superior have about 4 months of inventory, more evidence of the Conoco Philips Effect.

In short, this chart paints a remarkable contrast to a few years ago when Boulder's market competed head-to-head with Louisville for highest levels of absorption. The key question today is how long Boulder's market will remain soft. Stay tuned...

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Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog are the opinion of the writer and subject to market uncertainties. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.