The Time To Buy A Home In Denver Is Now!
To most who understand the national housing markets, and those in the real estate business, Denver ranks as one of the best home seller markets and best places to live in United States. To those of us in who are agents, Denver has been in an imbalance in the favor of home sellers, as inventory is small and demand is high. Zillow has also recently stated it's the best housing market in the United States for 2016. Even though the Denver Metro real estate market has been very active with bidding wars and low inventory, there are still many reasons for buyers to still consider buying and not abandoning hope in this market.
If you are considering purchasing a home, here are some things to consider.
New active homes for sale have increased over the past few months according to stats released by the Denver Metro Association of Realtors. An increase in inventory not only balances the market, but gives buyers more choice when purchasing. They don't have to feel like if they don't take the first one they see, they will be missing out or possibly overpaying for a property.
With more inventory, homes aren't selling as fast, there are fewer multiple offers and days on market are increasing. This should help soften home prices in the Denver area and should make it a little easier for a buyer to get an offer accepted as there should be slightly less competition. This is healthy for the real estate market as a whole. Just like when the stock market goes straight up, you need a period of sideways action where there is a balance of buyers and sellers. Straight up prices are unsustainable and therefore this slowing, or sideways action, is healthy for the next move higher in prices.
Affordability will continue to be an issue. Most of the large home builders are stating that it will take them two years to catch up with demand. According to Zillow, the median home price in Denver is $342,300, which is about 10% higher than last year. Even though supply has increased, there is still more demand, which will continue to push prices higher.
Interest rates continue to remain at or near historic lows. While most people don't see rates jumping substantially, a 1/2% increase in rates can affect affordability, and most would agree that as the economy continues to improve that rates will start to creep up. If you have rates and prices creeping up in unison, this will making housing affordability something that Denver home buyers will continue to battle.
If you are thinking about purchasing, now is the time. Be sure to contact us to learn more about mortgage options and what the housing market is doing in your specific area of interest. Whether it's Wash Park, Highlands Ranch, Littleton or Downtown, each area has it's own unique nuances.