After dropping sharply in the first part of 2015, recreational marijuana prices in Colorado have somewhat stabilized in recent months, according to a survey of cannabis stores.
The survey, spearheaded by the research firm Convergex, found that prices for an eighth of an ounce averaged between $30-$45 in June vs. $50-$70 a year earlier. But they essentially held steady throughout the summer this year.
The same trend played out with larger quantities, with ounces down to $300 on average compared with $300-$400 in June 2014. Some stores were even selling ounces for as little as $200 this summer.
The Convergex report chalked up the drop in prices to heightened competition.
“While demand remains high, supply continues to increase,” the report reads. It also notes that the Colorado market was originally dominated by preexisting medical dispensaries that were allowed to sell recreational, and then opened up to more businesses after September 2014.
The report further notes that the number of rec shops in Colorado has grown from 156 at the beginning of 2014 to 385 as of Aug. 3, and cultivation sites have also boomed, from 204 at the start of last year to 496 as of early last month.
The report did not analyze medical cannabis prices in Colorado.