Are we overbuilding Denver? Who is going to buy all the houses being built? These are the questions I am most asked this year.
With construction happening on practically every street in Denver, homeowners are happy, frustrated, excited, confused all in one moment.
Looking at the first quarter stats, I think this graph best shows that we need more homes for the people looking to purchase a home.
The yellow line on top are the homes that have come on the market, the blue line along the bottom represents the homes that have been sold. As you can see the two lines are so close together at this point in time. Notice that when the two lines were the furthest apart was in 2008 during the downturn. It was a “buyer’s market”. Today it is a “seller’s market”. We had almost 20,000 people move to Denver last year. We don’t have enough housing for the number of people who want to buy a home and that is why we are selling homes as fast as they come onto the market.
We are seeing single family homes being replaced with duplexes and several homes being scraped and the land being assembled to make room for multi-family housing in the urban core neighborhoods (West Washington Park, Platt Park, Golden Triangle, Capitol Hill, Mayfair, Five Points, RiNo, Sloan’s Lake, LoHi, Sunnyside, just to name a few).
We have sold about 200 more homes this year than we did last year during the same period of time. I’m wishing we had more homes for sale for all of my active buyers.
Denver has hit record high prices in March 2016. We’ll see the flattening out as soon as we have more inventory and when interest rates rise.
Until then – take advantage of the low interest rates and contact me to find out how much your home is worth. Let’s see if it is time to sell and move up, or… maybe it’s time to downsize!