Real Estate is Still Strong
The Denver area real estate market analytics continue to point to a strong seller’s market. At the end of September there were only 3,970 active homes in the local MLS. There are currently 75% less homes compared to the thirty year average. New home construction remains sluggish mainly due to material and labor shortages. Supply chain issues have made it extremely difficult to source many building materials. The lack of available skilled labor also continues to plague the industry. Low inventory is expected to persist for years to come.
The surge of buyer demand continues, as more workers continue working from home. In addition, many companies continue to grow and have added more employees to the local buyer pool. Interest rates are set to increase once the FED stops buying mortgage-backed securities and treasuries in 2022. They have been buying mortgage bonds to help keep mortgage rates low and stabilize the market post-pandemic. If the Fed stops this purchasing next year, it should provide upward pressure on rates. Unless there is a mass-exodus from Denver due to job shortages or other major concerns, prices will most likely continue to climb which they have done in 44 out of the past 47 years.
Although the market conditions continue to favor sellers, there are always opportunities for buyers. Whether you are a buyer, seller or investor, we would love to help you navigate the local market and represent you in accomplishing your real estate objectives. Contact us anytime to discuss your situation.
