If you have tried to buy a home in the Denver area you undoubtedly know how crazy Denver’s real estate market is! Bidding wars, buyers waiving appraisal and inspection contingencies, all cash offers…these are just of a few realities facing buyers in this current Denver and surrounding area market.
Housing researcher RealtyTrac, reports metro Denver home prices are rising at an annual rate of 12 percent which is up from last year’s increase of 9 percent. “The market is so hot that buyers are routinely writing offers above the asking price, and often way above it.” According to the Denver Metro Association of Realtors. Offers of $10,000 to $50,000 over list price are far from uncommon. And while Denver area housing values are reaching record highs, inventory has never been lower. “..[E]veryone who has a stake in the real-estate game is trying to capitalize on these trends” reports Chris Walker of the Westword Newspaper. “Fine. I get it. It’s the American way. But there is another side to that story. Denver is slowly but surely becoming a playground for the rich.” Says Walker.
Denver’s Real Estate Market Shows No Sign of Easing Up
Denver and surrounding suburbs do not have adequate inventory of homes to meet the high demand. The combination of low inventory of single-family homes, high rental rates and increasing population have produced a seller’s market where multiple-offer situations are the new norm reports Katie Hearsum, U.S.News & World Report. Nevertheless, buyers who persevere or who are willing to do some work can buy in this fast paced housing market. One of the most important keys to success is having a qualified and experienced agent on your side. You and your agent should be able to discern when a home is a good deal, a fair deal or an over-priced flip. The last thing you want to do is overpay in this already high-priced Denver’s real estate market.
As Denver continues to add quality jobs and attract new residents it is unlikely we will see the market pace ease up. Colorado’s job gains and population increase are twice as high as the national average and consumers spirits remain high. So, for the foreseeable future, Denver’s real estate market is going to continue to be robust.