Are We In A Bubble?
One of the most common questions I get asked is, "are we in bubble" or "what will the market do in the next several years?" Its a great question and here in Denver, its all about supply and demand. The chart below (borrowed from Lonnie Glessner with Nova Home Loans) illustrates the difference between our market now and 10 years ago during the last bubble.
Today, our inventory is a fraction of what is was 10 years ago and we've added a high number of jobs and new residents while new home development lags behind. Expect more of the same next year as inventory continues to shrink and more companies, Vertafone, Xero, DaVita, RLH Corporation, and Whole Foods, to name a few, look relocate their headquarters to Denver.
Perks Of Being A Home Owner In Denver:
Just how much of a factor is Denver's real estate market? Consider this: I helped one of my clients buy a condo last winter for $230,000. Today, that same unit in the complex is selling for $270,000. In 8 months, that condo has appreciated 17% which equates to $40,000 in equity. Few markets allow such rapid appreciation is such a short amount of time. The bottom line: if you'd like to own a home and you can afford to buy, don't wait. With each passing year, as home prices and interest rates increase, it will become harder and harder to buy a home.
Home Buyer Seminar
Early next month, ill be hosting a free home buyer seminar for anyone who's interested in learning more about how to buy a home in Denver. Topics we'll discuss include: