4 Quick Facts & What They Mean For You:
1. Record Low Listings
In February, active listings reached a record low of 3,878. February’s historical average is 14,635 (1985-2016).
What this means for you: Simply put, there are so many people and so few houses. If you are looking at buying this year, you will likely be up against stiff competition especially in price ranges under $400,000. It’s very important to be prepared and have a plan when you enter the market. If you're selling, you'll enjoy the benefits of an extreme seller's market, but you'll also need a plan and a strategy for the next home you buy.
More: How To Buy In A Seller's Market
More: 6 Ways To Get Your Offer Accepted
2. Rising Rent Rates
Rents rose 10.2% from Q4 of 2015 to Q4 of 2016. Denver now has the 4th highest rental rates in the nation.
What this means for you: There are fewer and fewer situations where renting is cheaper than buying in our market. Is buying a home in Denver expensive? Yes, but the cost of getting into the market and owning a home is well worth the reward. Plus, its extremely unlikely our home prices are going to go down anytime soon. We could be looking at many more years of appreciating home prices.
More: Are We In A Bubble?
More: How Much Money Does It Take To Buy A House?
3. Denver’s Job Market
NerdWallet ranked Denver the second best city for job seekers in 2017. In 2016, our job growth rate was 3.2% as we added nearly 45,000 jobs.
What this means for you: Expect more and more people to continue to move to the Denver Metro Area. Our well-balanced local economy paired with job growth is one of the main reasons our population keeps increasing. Population growth and job growth mean increasing demand. Increasing demand combined with low supply (see #1) mean home prices will continue to climb. In February of 2017, median sold price increased 9.2% year over year.
4. Condo Prices Soar
In February, condo median sold prices increased 14.6% year over year. Condo development currently only makes up 4% of residential new construction. By comparison, in the early 2000’s, it made up around 25% of residential new construction.
What this means for you: Inventory of condos, the most affordable price points, will remain low. One major reason for low condo development is our construction defect laws. Colorado lawmakers have been unwilling to allow any changes to our construction defect laws up to this point. Builders are not building condos currently because the current law allows for them to be sued very easily even over minor issues. Lack of affordable housing and condo units is a major contributing factor for our low inventory.
If you have questions, or you're looking to buy or sell this year, please feel free to reach out to me: Email Me