REAL ESTATE NEWS
Buyers Breaking with Tradition
With demand for homes skyrocketing and inventory in short supply, buyers have started leveraging their real estate purchases in unconventional ways. According to a recent survey from Realtor.com®, 31% of Americans (110 million people), have purchased a primary residence with someone other than their spouse. Among the 18-34 age group, that number is even higher at 41%. Co-buyers include parents/grandparents/older (6%), children/nieces or nephews (5%), siblings/cousins (4%), roommates (4%), and close friends (4%).
Where are all of the new Condos?
As you may have noticed, most of the larger commercial buildings being constructed around town are apartment buildings (for rent) and not condos (for sale). In 2006, condo construction was robust in the Denver metro area. Approximately 50% of the new multi-family construction was “for sale” product. Since then, new condo construction represents approximately 5% of all local multi-family development.
The major reason this disparity exists in Colorado relates to the onerous construction liability laws. Developers building “for sale” condos are exposed to liability for defects in construction for up to seven years after the completion of a project. Unfortunately, the current laws are likely to be in place for a while, so do not expect to see a lot of condo construction anytime soon.
As always, if you have any questions regarding the state of the Denver real estate market, please don’t hesitate to reach out. We are here to help!