What is the Denver Real Estate market going to do in 2015? I wish I could tell with certainty what it is going to do, but we all know that is impossible. The next best thing then is listening to what the experts have to say and trying our best to predict based on that.
The Real Estate numbers in Denver the past 3 years have been pretty incredible and each year we wonder how it can continue. If you look at some stats though, it is pretty easy to see why it has happened and why it will continue. In 2014, 56,000 people moved to Denver County alone. That's not the metro area, that is Denver County! So when we wonder how all the new apartments being built are going to be filled, I think now we know. Over 85,000 people moved to Colorado last year and a majority of those to the Denver Metro area.
So why are so many people flocking to Denver? First, Denver has one of the strongest job markets in the country.Denveris ranking in the top five nationally for population growth, employment growth, wage and salary growth and personal income growth. Unemployment rates should remain under 5% for 2015 with over 60,000 jobs expected to be added. Second, people love the lifestyle Denver has to offer and who can blame them? Finally, while prices in Denver are the highest they have ever been, they are still lower than many other major cities across the country, especially those in California and New York.
With all these people moving to Denver, many with high paying jobs, it is no wonder there is such a shortage of housing. Denver is expected to be in the top three major metro cities for price gains in 2015. Realtor.com predicts a 4% increase while Zillow.com is closer to 6%. Keep in mind that last year Zillow estimated a 3% increase for Denver and it turned out to be closer to 10%. Bottomline, the Denver market is going to be hot in 2015 with no sign or reason to slow down for the next 3 to 5 years.
What this means for buyers. Expect to pay asking or above asking price for a home. It isn't about getting a great deal on a house, it's all about getting into the market and letting the market build equity for you. The longer you wait, the more you are going to pay for a home and with interest rates expected to be near 5% by the end of the year, time is of the essence. It is crucial to be well qualified, know what you want so you can jump on a house as soon as it comes on the market, and be willing to make a competitive offer to stand a chance. Working with an experienced agent who knows how to handle these competitive situations can be the difference between owning a home and not so make sure you are well represented.
What this means for sellers. Now is the time to sell if you have been thinking about it. There is a major shortage of inventory in the market and we need houses desperately. This means buyers have never been more motivated and getting top price for your home is very realistic. Finding a replacement home is a challenge for many but we have been working with sellers in that situation long enough we have lots of solutions that are easier than you think. I simply can't stress enough how good of time it is to sell.
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