Real estate agents in Colorado and across the nation have not been seeing nearly as many homes for sale in their market as past years. Just when Realtors thought the existing home inventory couldn’t get any lower, it does, again and again. There have been occasional “balances” in the market when there seemed to be a pretty equal number of serious home buyers and and sellers. Those days are gone again.
There just aren’t many Colorado Homes for Sale
Real estate agents around Colorado are getting frustrated and rightfully so. It seems like all the people in the real estate industry are saying the same thing. “I have 10 buyers for every listing on the market” says Danny Skelly the owner if Orson Hill Realty in Evergreen, CO, a real estate company in the Denver Foothills. The Denver Foothills have had a hard time the last couple years accommodating all the buyers wanting to purchase a home in the foothills.
Real estate is even booming in the big Colorado cities like Denver
Other large cities are seeing people leaving due to high taxes and other reasons. Denver is not like this. They are continuing to add units, commercial and residential, in Denver and have not stopped building. There are areas in the country that are more desirable than others. When there is an area that lures buyers like Denver and the Denver Foothills the supply and demand is drastically amplified. There are still areas in this country that the real estate has not even appreciated or appreciated at a much slower rate than other areas.
Low supply is driving up sale prices
Everyone likes to see real estate appreciate in their area. Inflation is usually around 3% so if you appreciate at 5% a year you are still doing pretty well. In some areas of Colorado (Like the Denver Foothills) we have seen 12-15% Annual appreciation…. for a few years!
Is Colorado in a real estate bubble?
I hear it every now and then “prices went up too high…we are in a real estate bubble”. Just about every real estate you talk to in Colorado would disagree. Our real estate market has proven value over and over again. The market has accomplished this by having multiple offers over asking price across all price points on a regular bases.
When did the real estate boom start in Denver and Colorado?
The buying rush has started about 6 or 7 years ago and has been going strong since. With NAR stating most people only stay in their homes for 5 years on average before selling, statistics would tell us they are ready to sell. To upsize, downsize or just change the scenery. We have not seen that yet. That will really help the low housing inventory if people start upsizing and downsizing and staying in the area. Also the more homes we sell at these prices help to confirm and keep value.
Is now a good time to buy real estate in Colorado?
There are some home buyers that are thinking they missed boat. They don’t want to buy at the top of market. They are afraid the market has reached the top and will come crashing down. As a real estate broker my opinion is this is not the case. Again only as an opinion I can point you to many statistics and numbers that contradict this. I don’t believe we will continue to appreciate at the rate we were. I honestly hope we don’t. Rates need to continue to go up in a healthy way. This old timer real estate agent would be more than happy with 5% annual appreciation across the board.
Is the spring the light at the end of the low inventory tunnel?
Real estate agents refer to the spring as the time of the year all the metal signs bloom. They are obviously talking about real estate agent’s signs. It is the time of the year sellers clean out their home and declutter. They they get it ready to sell as the kids are getting done with school. The summer has more people driving around and looking for signs. Spring is traditionally the busy time for real estate. Although the last few years Colorado has not had a noticeable season. It has been a busy market all year. Many Realtors are still staying optimistic that spring will bring the listings and in return bring back the frustrated buyers.