Statistics in real estate can show when a good opportunity exists for either a buyer or seller. I am, not very good at statistics but my friend Sean Willcox has been working on this article and it really shows what is happening in our Denver real estate market. Sean is a Broker Associate here in my Coldwell Banker office. He actually wrote this and deserves the credit for a great article.
Opportunities in This Denver Real Estate Market
Over the past 30 years, the months of available inventory of homes has stood as an important indicator of the health of our real estate market. A surplus of inventory favors buyers and a shortage favors those looking to sell. For eight years running, Denver has had a shortage of inventory. All indications are that it is going to be even more so as we go into the 2020 selling season.
Where is the opportunity in this kind of market? The first and obvious opportunity comes to those who may be looking to sell a home in Denver and move to a less expensive market. If you are considering this option, we have a network of brokers throughout the country who can assist you with a purchase in a new location. The second opportunity is for those looking to invest in real estate. All signs point to continued growth in prices and increasing rents as more people in all age ranges want the mobility that renting allows.
A good opportunity exists for people who want to stay in Denver and increase the size or better the location of their current residence. Regardless of the value of your home, the next price point up has more inventory available than the price point of your current home. This allows for an easier sale of your home. In addition, the purchase of your next home will offer a price point that has more inventory and fewer buyers. Take advantage of this dislocation in inventor. Then, you can further leverage by timing the sale and purchase within the year to maximize the advantage gained in each of the steps.
Great Up-sizing and Downsizing Market
The kids are gone – I want a house that better fits my lifestyle. Do you want to downsize to a smaller home, a different layout or maybe a lower maintenance property but are a little overwhelmed with how to accomplish that move? We have helped a large number of people achieve their goals in this arena over the past 5 years. We’ll guide you through the challenges that come with this journey and bring you into port right where you want to be for the next stage of life. We start with an analysis of what it might take to maximize the value of your current residence. Then, we explore how to best preserve your current equity within the cost structure of a home sale and purchase (existing or new). And finally, we identify the right location and home for your new life adventure.
Denver Population is Growing
The Denver metro area is projected to grow by another 700,000 people over the next 10 years. (Sorry for that news!) This only lends itself to a continued climb in the value of real estate. The current generation is no different from the previous; the purchase of a home will most likely be the foundation of their future financial health and wealth. Working with experienced brokers is the key to successfully securing a home in the highly competitive entry price point of the market.
As 2018, and the first half of the 2019 real estate market unfolded, it appeared as though we were heading to higher inventories. We went from a low point of 3,500 available homes at the end of 2017 to a high at the end of July 2019 of 6,000 homes. Then, the last half of 2019 changed all that. It brought a new direction for the available homes buyers had to choose from. The inventory began to drop and as can be seen from the chart. We ended the year with a considerable year over year drop in inventory all the way up to the $2M dollar range.
Millennials Can Seize Benefits from Real Estate Swings
What about my adult kids……you know, those Millennials! Is now a good time to buy at these prices? Fifty percent of the Buyers we have the privilege of working with are between 25 and 35 years of age. I am happy to report, the stories of them living in their parent’s basements and playing video games are greatly exaggerated! As a demographic group, they are highly capable of applying their learned knowledge to real world decisions. And, they are very organized and timely with all the necessary tasks needed to purchase a home. They are prompt and courteous. Good job parents!
Every Denver real estate market presents frustrations and opportunities. Take advantage of these opportunities now. They are not likely to be the same next year.