What is the Denver Real Estatemarket going to do as we get into spring? Historically, springtime marks the beginning of "buying season" for Real Estate in Denver and so the standard answer is that the market is really going to pick up. But with as crazy as the market has been the past three months, it is hard to say with any certainty that it can get any hotter than it is right now, but my gut says it will.
According to the S&P/Case Shiller home prices index that was released yesterday, the Denver metro area saw a 9.2% rise in home prices in January compared to last January at the same time. That marks 13 straight months of year-over-year gains and the highest gains since the housing market burst in 2006. According to an article in the Denver Post, click here, Denver's price index was 134.17 in January, meaning that local home resale prices averaged 34.17 percent higher than the benchmark month of January 2000.
These are all great signs for the Denver Real Estate market and considering these gains were accomplished in the "slow season" speaks volumes to how strong the market is right now. What is driving this new market you ask? It is a combination of factors starting with low interest rates, the lowest inventory of homes we have ever seen and buyers who are finally confident the market has returned and are ready to get back into owning a home.
It also helps that job growth is strong in Denver and lots of college graduates are heading this direction. In a study by Rent.com, click here, Denver ranks fourth across the nation for cities where college grads can settle. The study factored in unemployment, cost of living, and annual mean wages, all of which make Denver so desirable right now.
As the weather warms up and as we are starting to see some more green on the lawns, we are finally starting to see a few more homes come on the market. But we are also seeing more and more buyers come as well which makes me think homes are going to continue to sell very quickly which is great news for sellers and buyers have to understand that if they don't jump on a house quickly, it won't be around for long.
I've had buyers ask me why they shouldn't just wait for the craziness to settle down and then buy. I understand their reasoning but to be honest, I don't see this market slowing down anytime soon based on the number of extremely active buyers out there. It will slow down at some point, but how much higher are the prices of these homes going to be at that time? There is no reason that the prices around Denver won't continue to increase and I expect when we look back in the fall, there is going to be a very large number of buyers wishing they had bought a few months earlier, just like we are seeing now.
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