You Won’t Believe The Industry Helping the Real Estate Market in Denver
Denver’s housing market is on fire, according to CNN Money. It’s a seller’s dream market, and it is being helped by the most unlikely industry in Colorado.
Pot.
Ever since its legalization in 2012, Colorado’s budding economy has taken off. Creating jobs that didn’t exist before which, in turn, means creating new real estate means.
Not only that, but the tech industry is growing here as well, contributing further to the economic growth here.
We are the #1 Market for Homes
As of May 2015, the Denver-Aurora-Lakewood, CO areas are among the best real-estate markets.
Because of Denver’s resounding economic growth, there is a tight supply of housing as inventory moves the fastest it ever has in over 25 years.
There is not sign that this will slow down anytime soon.
David Sinkey, a principal at Louisville-based Boulder Creek Neighborhoods, speaking to the Denver Post, can’t believe how fast houses are selling, saying “One of the trends we saw [30 months ago]: There won’t be any new-build homes that are affordable in the future.”
Because of that bleak outlook a couple of years ago, the skilled workforce needed to build homes moved to other professions, and now that the housing market has bounced back, there is now a shortage of workers needed to build homes.
Proof of this can be seen with buyers and their newly built homes: it will take an average of 9 months to a year after signing a contract to finish a newly constructed home.
Bubble? What Bubble?
With how great Denver’s market is for real-estate, some are wondering if this is only temporary.
Wade Perry of 9News is confident that Denver’s housing market is here to stay.
Perry says that the last time we were in a bubble, “it was due to lenders providing loans to people who likely were not credit worthy under normal lending guidelines,” which, as a result, created too much supply and not enough demand when homeowners had to sell due to their adjustable rate loans “adjusted” into rates that forced owners to sell.
But now, with the low supply of homes, prices have increased nearly 12% in the last 12 months, averaging at $271,300.
It is Normal to be Frustrated
Home prices have gone up and houses are flying off of the market. It is a seller’s market, afterall, but what does that mean for the home buyer?
It means reaching for that Tylenol more than you would like.
But that’s okay.
Just be ready to compete, be prepared, and, most importantly, be patient.
Since homes are selling within days of being listed, it is important to make your offer enticing, and that doesn’t necessarily mean that you need to offer more money than other bidders.
Keeping other opportunities in mind when placing your bid, such as giving the seller time to move out, negotiating carpet/paint/landscaping budgets could make your offer the one that sticks out.
Take advantage of the market and keep your game face on; the home of your dreams is out there if you act fast enough.