What type of homes are buyers looking for in the Denver area right now? Believe it or not, most buyers, especially first time buyers, are now looking for smaller homes, not larger. Gone are the days of the McMansion as we welcome in the day of affordable, smaller, energy efficient, economical homes.
The National Association of Home Builders (NAHB) reports that first-time buyers bought homes averaging 1,874 square feet, significantly below the 2,549-square-foot home purchased on average by those trading up. Forty-six percent of first-timers bought homes smaller than 1,500 square feet. With 41% of buyers being first time buyers, and with that number growing, the trend of increased demaned forsmaller, affordable homes should continue.
So what does this mean for Denver? In central, urban Denver, the majority of the homes are in this square footage range, so these homes should continue to remain desirable. If youown a home this size and have been thinking of moving up to something larger, now might be a perfect time since there will be more demand for what you are offering and less for what you would be buying. If you own a smaller, first time buyer type homeand are holding on to it as a rental,once again it could be a great time to think about selling. RealEstate, especially in Denver, is all about supply and demand.By looking at these numbers, we know whatis in demand and it is just a matter if there is enough supply to meet this newest first time buyer trend.
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