Home prices in the Denver suburbs are booming. Many homeowners and renters are fleeing from the heart of the city to the Denver suburbs, but why? As we are coming out of a global pandemic, a lot has changed in the past year. Mostly, people have decided they truly need one major amenity – space. Who knew that locking people inside of their homes for so long could have such an impact on the Denver suburb housing market!?
As offices and schools became obsolete during the pandemic, many Denverites realized they could do so much more from home. This made the need for more room at home imperative for those who were now working from home and learning from home a priority. Typically, you get more space for your money as a buyer the further away from that you get from downtown Denver. But is that still the case today?
Why the Denver Suburb Boom?
A tale as old as time, if there is more demand than supply, the cost will go up. The Denver suburbs are in the middle of an inventory crisis. A balanced market, meaning there are an equal amount of homes for buyers in the market, is 6 months of inventory. Right now, in the Denver market, there are at about 0.5 months of inventory. This means that if all sellers stopped listing their homes tomorrow, in 14 days there would be ZERO homes on the market. With 50,000 new residents from July 2019 to July 2020, Denver is among one of the most popular cities. The Denver suburbs are no exception.
Now, all we can do is wait. Historically, pre-pandemic, the July housing market has slowed down due to people going on vacation and enjoying their summer. In this market, we are starting to see some buyer exhaustion. Many buyers have been so beaten up by submitting offers on homes weekend after weekend, only to be outbid. The historically low interest rates are also driving this crazy buyer boom. So as long as the rates remain this low, we won’t see much movement as far as competition for homes in the Denver suburbs.
All in all, if you’re thinking about buying a home in the Denver Suburbs, don’t wait. Start your search now and you may be able to take advantage of a slight lull and low-interest rates before the market fires up again in September.