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Unsold-home numbers could hinge on 'phantom' sellers

By John Rebchook, Rocky Mountain News (Contact)

Published February 4, 2009 at 12:05 a.m.

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Beware of the phantom home sellers waiting in the wings for the right time to put their homes on the market, that is.

At the end of last year, there was only a five-month supply of existing homes on the Denver-area market, which is close to what is considered in equilibrium - that is, supply and demand are balanced.

While the reduction in inventory is a "positive trend," many home owners are waiting out the current bad market before they try to sell, which could dramatically increase the number of unsold homes on the market, noted John Covert, director of Metrostudy's Denver division.

"Approximately 25 percent of all listings and sales were for properties in foreclosure. This market segment has buoyed existing- home market statistics and has encouraged a new breed of aggressive deal seekers," Covert said in his report.

"Many would-be sellers have taken their homes off the market," he added. "The result is a growing 'phantom' resale market waiting until conditions improve or necessity forces homeowners to put their homes back on the market."

During the fourth quarter of 2008, the number of listings on the Denver Multiple Listing Service declined 20 percent year-over- year, falling to 19,600 - the lowest level since 2001, he said. There were 47,837 sales, a 4 percent drop from 2007.