Aurora, Colorado 2021-02-23 00:45:39 –
Denver — Supply is still unable to keep up with the demand in the Metro Denver housing market.
New numbers from Redfin show average homes sold in just nine days in January. Denver was second only to Tacoma, Washington.
We are investigating the boom and whether it will collapse.
“One of the things that makes this worthwhile and so much fun is that we have all the original woodwork,” said Lori Abbey, broker associate of The Abbey Collection at Compass Real Estate, her signature group. Stated.
It’s definitely part of the appeal of the Congress Park Bungalow Abbey just listed.
“That is, there are few scratches,” Abbey pointed out the built-in bars and buffets.
Abbey knew that clients Scott and Sarah Osborne would love it.
“I can’t think of any better place to raise two boys,” said homeowner Scott Osborne.
The couple bought a bungalow in 2016.
“It was a shocking market to enter from Oklahoma,” Sarah said.
Their family of four soon surpassed it.
“We bought this house four years ago,” Scott said. “Our kids were 6 and 3 years old at the time, the two boys grew rapidly, and unfortunately we’re just growing out of this space.”
Fortunately, their $ 700,000 investment is very well valued.
“We are listed for $ 849,900,” Sarah said.
The number of Metro Denver is staggering. According to the Denver Metro Association of Realtors (DMAR), the average home price is currently $ 629,000.
This is a surge of $ 100,000 over the year from an average of $ 530,000 in January 2020.
“It’s like the market is drunk,” said Chad Nash, senior real estate adviser at Compass. “The forecast I’m reading is that the price should be raised by 6-10%.”
Osborne witnessed it directly.
“This is the best investment I’ve made in the last four years,” Scott said.
But these sellers are also buyers.
“We will take the stake from this house and put it in the next house,” Scott said.
They are on the lookout.
“When something you like hits the market, you must be ready to act on it right away,” Abbey said.
“You go see the house thinking it’s feasible, and then you bid high,” Sarah said.
The bidding war is amazing.
“I listed the house for $ 544,000 this weekend,” Nash said of the house listed in North Glen. “It was close to $ 590,000.”
Nash says it’s an old problem: supply and demand.
“It’s astronomically raising home prices,” Nash said.
According to DMAR, Metro Denver’s inventory is the lowest ever.
In May 2008, after the collapse of the home, Metro Denver had a record high inventory of 26,000 homes for sale.
Fast-forwarding in January 2021, Metro Denver’s inventory is record low, with only 1,200 homes on the market.
In January, housing stayed on the market for only five days. This is down from the average of 24 days in January 2020.
According to both Abbey and Nash, part of this is a herd of relocating people.
“They come from California, Washington DC, New York, Dallas and Texas,” Abbey said. “If people keep coming, we don’t have enough homes to accommodate them all.”
Both Abbey and Nash say that the phenomenon of working from home is attracting more people to Colorado.
“If you don’t have to be in the office every day, why can’t you go to build the same house in Denver, Colorado?” Nash said.
Tony Hernandez, an affiliate professor at Denver Metropolitan State University, said: “If you’re from California or New York, it’s a great market.
Sadly, the market is squeezing a lot of people, Hernandez says.
“People who earn less than $ 54,000 a year probably won’t be able to buy a house,” Hernandez said.
So what’s next?
Almost all experts agree that there is no looming bubble like in 2008.
“I can’t see the bust this year,” Nash said.
“The free market says it sells as much as it can, and that’s what people do,” Hernandez said.
“I don’t think it’s the last bubble we had, because it was a bubble based on mortgage scams and many other things,” Abbey said. “It was a poorly regulated market.”
“It’s going to be a big deal for buyers,” Nash said.
But he has a warning.
Nash sees an increase in somewhat crude lending practices, such as ads advertising the idea that only $ 1,000 is needed.
“I think these programs will draw buyers into this idea.” Hey, we’ll do that with a $ 1,000 price cut, but when we go for sale we’ll take 20% of your stock, “Nash said. Told. “Don’t go that route. If you don’t need it, go to the traditional CHFA and then to the traditional Metro DPA. Don’t just go to this shiny carrot.”
Nash and others suggest that the carrots you should use have very low interest rates.
Currently, it is 2.8% for a 30-year mortgage and 2.35% for a fixed 15-year mortgage.
And finally, if you’re selling, experts say don’t be greedy.
“People are familiar, so Abbey said.” They have Zillow. They have the internet. They have all sorts of things. “
“What I tell the seller is reasonable,” Nash said. “This is the seller’s market, but it’s a fair market. If you try to be greedy, the market will punish you.”
Going back to Osborne’s house, the plan is to price it correctly and go from there.
“For now, much of it is just blind faith. We’re going to put the house on the market. We don’t know where to land yet, but we’re sure it will work,” Scott said.
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Metro Denver’s crazy housing market is likely to stay hot, hot, hot! Source link Metro Denver’s crazy housing market is likely to stay hot, hot, hot!