“Is the market in Denver just crazy right now?” There’s much a buzz about real estate- some are unsettled and unsure about whether or not they should buy or sell this year. Some are wondering if they are buying at the “top of the market” before the proverbial “bubble” bursts. Some are playing the market- holding off on selling to wait for that “peak” where they can get the highest and best price. Is there a strategy that we’re missing?
According to NAR (National Association of Realtors), major trends for 2017 include:
- Millennials and Baby Boomers will be the most active demographic segments
- Low inventory of homes may continue
- Denver will be 26th out of top 100 markets with 6.41% price appreciation and 3.96% more homes selling; Colorado Springs will be 12th at 4.77% appreciation and 6.71% more sales.
The fact is that Denver’s Real Estate Market is boringly steady. 2017 is likely to look a lot like 2016, as it did in 2015, as it did in 2014. We still have a significant migration to Colorado and an inventory challenge. Homes being built are 3 to 4 times behind the rate that is needed to both keep up with the migration and maintain a healthy market.
In 2015, Denver’s Home Affordability Index (HAI) was around 125. At the close of 2016, it sits around 115. This means that a median income family has 115% of the income needed to qualify for the median priced home. If you want to learn more about Denver’s HAI, see my blog, https://lindseyfriedmanhomes.com/2016/03/05/do-the-median-home-prices-in-denver-give-you-pause/.
Of course, we always need to sit down and look at your individual situation to identify and prioritize your needs and goals. Since the market is looking characteristically similar year after year, exceptional realtors are familiar with how to work effectively on your behalf in this market. For more food for thought on our real estate market to come in 2017, read my company’s brief blog https://coloradohomerealty.com/play-it-again-sam/