Denver is undoubtedly experiencing a house frenzy. The question is: will the boom break?
What you say: “I don’t think a bubble is possible here. … We have people with a lot of equity, ”said real estate agent John Danyliw, who has been in the local market for 50 years.
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Game Status: Denver home hunters grapple with bidding wars, soaring prices, and pressure to make quick, hasty decisions – including waiving the right to a property inspection – before another buyer buys the home of their choice.
The high demand continues to outstrip inventories on Metro Denver, with the number of homes for sale dropping to historic lows, in part due to low mortgage rates, which are currently 3%.
The increase in the value of the home is increasing in the high double-digit range.
Meanwhile, local brokers are undergoing the meticulous process of navigating an unprecedented market.
Remarkable: The housing shortage in Denver reflects a national trend. The country’s available homes are reaching record lows.
Data: National Association of Realtors; Graphics: Axios Visuals
The big picture: Industry leaders predict the market won’t slow down anytime soon – which means waiting to buy could be more expensive in the long run.
For example, just a month’s delay in buying a $ 500,000 property from late February to late March would have cost an additional $ 35,000, according to the latest data from the Denver Metro Association of Realtors.
Between the lines: Most Denver buyers are not for-profit investors, real estate experts tell Axios, although this is happening elsewhere.
“The investors I have spoken to in this market see no value here … they would buy on the high side, which is usually not a mantra for investors,” said Andrew Schiff, the owner and managing broker of Scout Real Estate Group .
By the numbers: The median sales price for a Denver subway home in March was $ 500,000, an increase of about 12% year over year, according to DMAR.
The story goes on
Flashback: In March 2008, more than 25,500 properties were offered for sale; today there are fewer than 2,000, reports DMAR.
The bottom line: “If interest rates stay low, demand picks up with new jobs, supply doesn’t rise, and the only thing that moves is house prices until people’s prices come down. That would mean we have a divided society of habits and doing well. nots, “said Lawrence Yun, chief economist of the National Association of Realtors, to Felios Salmon of Axios.
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