Buying a home in the Denver Metro area has been difficult for some time. Due to the lack of available homes, prices soared, a bid war broke out, and homes were purchased shortly after listing.
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Currently, according to a June trend report recently released by the Denver Metro Real Estate Association, this year’s homes are 7.1% more than this time last year.
Andrew Abrams, chairman of the Denver Metro Real Estate Association and owner of Guided Real Estate, states that there are two reasons.
“Interest rates have risen and buyers’ demand has fallen. The only other thing is the seasonality of the market,” he said.
Demand for housing usually falls during this time, but this year it will be a little more pronounced. Andrew says it may be bad news for the seller.
“The listing will be on the market for a little longer. Prices can even go down a bit, and I think sellers have to be realistic about their prices,” he said.
But good news for first-time homebuyers who are having a hard time finding a place.
“It may actually create an opportunity for them to enter the market and start building fairness,” he said.
Inventory may be up, but Andrew says the Denver Metro real estate market isn’t significantly cold.
“What we expect is that it will be a little flatter or a little lower,” he said. “So it won’t be dramatic, but it will be relatively stable. Hopefully you’ll see it recover for the rest of the year and then from January.”
There are many reports that people are moving out of Colorado, which is why there are more homes available. Andrew says they have never seen it in their industry. In fact, they have seen as many people moving to Colorado as there are people moving to Colorado.
