Looking to buy a home or relocate to Colorado? The Colorado real estate market is growing, and when looking to purchase a home, it is essential to understand the market trends that are taking place in your new potential neighborhood. In Colorado, the real estate market changes from neighborhood to neighborhood and continues to grow in the national spotlight.
In 2017, low inventory and appreciating homes were driving the market, and this is continuing at a rapid pace into 2018. Specifically, for Denver Metro, the total number of homes sold in 2018 from January through March slightly decreased while there was an increase of 6.1% in the overall total dollar volume of sold homes. The lack of homes for sale is not something that is unique to Denver. In fact, as of 2017 only Seattle and San Francisco were the two cities with fewer homes for sale relative to demand, then Denver. There are multiple reasons for this, and one is that builders are not building enough homes. There is a lack of potential lots, lack of qualified labor, and new construction that is being built but above a reasonable price point where companies can make money. Also, people may not want to list their home because they know it will be difficult to find another. Affordability is becoming a roadblock to future real estate growth.
Currently, there is an imbalance of supply and demand for homeowners and buyers. Homeowners are enjoying the gain in value while the choices and affordability are a challenge for homebuyers, making the time currently a seller’s market. Currently, there is a 6.7% decrease in the average days a house is on the market; this calculates out to just 28 days. Houses are on the market for fewer days forcing buyers to act fast and make impactful offers. This is why when you are looking to buy a house, it’s imperative to contact a lender, such as myself, well in advance to make sure your financing is in order and you have a prequalification letter ready to go when you make an offer. I also have an extensive network of Realtors who I can refer you to who are knowledgeable in this current market environment and can help you find the right home.
Market Data Source: