Over the last 30 years, active listings have stood as an important measure for understanding the condition of our housing market. A surplus of listings creates conditions favorable to buyers, while a deficit in listings will favor sellers. 2014 through mid-2018 represented a historic period of extreme low inventory. This period shaped our robust housing market that continues today. From May 2018 through January 2019 inventory levels started growing and so too did the feeling of a sense of optimism from buyer's agents and concern from listing agents as we foresaw a more balanced market in our future.
Active listings reached their lowest point in December of 2017 with 3,854 listings. A year later, that number increased 44.7 percent to 5,577. This growth in inventory was due in part to sluggish sales and a higher number of new listings entering the market. According to the numbers, this trend started to reverse itself towards the midpoint of 2019 with November representing the first month in the previous 13 that showed a decrease in listings compared to the previous year. We finished 2019 down 9.7 percent from 2018 in active listings. Are we heading back to a shortage of inventory? The trend suggests yes, at least through the first half of 2020 and possibly longer as buyer demand remains strong.
Unlike other historical numbers we track, active listings generally will not increase year to year. 2019's year-end number represents 41.1 percent of our 30-year annual average of 12,262. Our record-high came in July of 2006 when we recorded 31,989 listings. During that period of record highs, months of inventory stood at 6.6 months which implied a robust buyer's market in which everyone had a listing but agents with buyers were king. Today's 1.2 months of inventory stands in significant contrast from 2006 as we continue to remain a seller's market.
Engel & Völkers is one of the world’s leading service companies specialized in the brokerage of premium residential property, commercial real estate, yachts, and aircraft. Based in over 800 locations in total, Engel & Völkers offers both private and institutional clients a professionally tailored range of services. Consultancy, sales, and leasing form the core competencies of the staff of more than 11,000 people. The Company is currently operating in over 30 countries on five continents.
Since 1977, we have been the select provider of high-end premium real estate services throughout Europe, Asia, and North America. We use the latest technologies, manage an extensive network of exclusive listings and potential buyers, partner with influential media outlets, and employ the highest-caliber agents who strive to represent our distinguished brand.
Our style o f doing business originates from our early success as a luxury property agency. We maintain the same standards of quality and service in everything we do.
Engel & Völkers, Real Estate Advisors Representing And Promoting The World’s Finest Properties Since 1977
33 Countries | 11,000+ Real Estate Advisors | 800+ Shops | 5 Continents
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"The best part about working with Jim is his knowledge of the industry and specifically his understanding of the greater Denver area. He encouraged us to look in areas we wouldn't have considered and we found the perfect house in the perfect neighborhood. He also gave us great advice in dealing with a difficult buyer and made a stressful process go much more smoothly than I expected. I would recommend Jim to any and all of my friends and family."