The capital of Colorado's real estate market is very competitive by all accounts. Denver, CO is one of the fastest growing cities in the nation, according to a blog post on why people are flocking to Denver, more than 100,000 people have moved to Denver in the last seven years (lifestorage.com). And why not? Denver is in close proximity to several great vacation spots (the city itself being one of them), the city is near an international airport, and Denver perfectly blends city-living with the vast Colorado wilderness.
Denver's growing city is appealing to so many because along with the bustling town, Denver is nothing short of an outdoor playground. For those that want the best of both worlds and all four seasons -- Denver is a no brainer.
The Best of Both Worlds
The competitive market in Denver has seen median single-family home prices go up over 14% in the last year according to the Denver Post. Local newspapers all report that as 2020 neared an end, the housing market continued to wow. The metro-Denver area was recently named the second-best city to live in the country by U.S. News and World Report and the numbers say that residents happen to agree.
Redfin reports that the median list price is $510,000 for single-family homes and condo homes are coming in around 335,000. These prices have gone up over 15% in the last year and more and more buyers are making offers on homes; meaning several listings are selling for over the asking price. Denver is most definitely a seller's market as there is more demand than supply of homes on the market. Homes are only on the market for an average of ten days which is minimal by any standards, Redfin also noted that "hot homes" are on the market for an average of four days. The luxury of dreamily looking at houses one wants to purchase is nonexistent in housing markets like the one Denver is experiencing.
The inventory of homes is getting lower and even hit 0.81 in October -- a record low. Markets across America are experiencing this same phenomenon. While the market was initially keeping up with the demand, so many are wanting to move to the reported second-best city to live in, that they are buying homes basically as soon as they reach the MLS. Buyer's agents in Denver need to be vigilant and responsive if they want their buyers to have a shot at closing escrow, while seller's agents will have to field multiple offers and no doubt a good amount of negotiations. Competitive markets are great in a lot of ways for agents, sellers, and even buyers sometimes -- but like all good things; come at a price.
Norada Real Estate Investments educates readers by ensuring they are aware that "the affordability crisis still exists in the Denver Metropolitan Area. [With a] 14.26% annual gain in the median price of a single-family detached home sold in October of 2020. Low mortgage rates help but don't eliminate the risk that the housing market could still face an affordability crunch if home prices continue to rise at a rapid pace." While this is a key factor to be aware of, there's also truth in the fact that cities like Denver are not losing property value in the long-term. So as long as buyers are looking to hold onto their investment for a long while and have a stable job -- the risk is minimal. Surely, long-time locals and new residents are worried that this affordability issue could impact the housing market and the value of their homes, but for now, all they can do is wait it out as the market continues to go wild.
Denver, CO isn't alone in the category of cities that are booming and the pandemic has a lot to do with that, oddly enough. Because most Americans are able to work from anywhere right now, plenty are seizing this opportunity to make their relocation dreams a reality. Interestingly enough, the opposite may be true for sellers because of the uncertainty that the climate brings which can attribute to the low inventory of homes available. Selling one's home comes with a lot of emotional processes, ask any seller or any agent, these processes and their magnitude are magnified when so much of our daily lives are up in the air.
With an estimated 300 days of sunshine a year, a rapidly growing economy, the perfect blend of outdoor fun and a metropolitan city -- it's easy to see why so many want to move to Denver, Colorado and why the housing market is one to watch. It seems with Denver,CO, the same is true for any in-demand area of residence -- agents and buyers alike need to be at the top of their game and move at the pace that the market demands.
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