I have one word for you…. INVENTORY, and we need more of it! Inventory is defined as the amount of time it would take for all of the homes currently on the market in a certain area to sell, and it is measured in months. A balanced market – neither a seller’s market nor a buyer’s market, will have roughly 5-9 months of inventory. Based on statistics from REColorado, the estimated inventory for the entire Denver / Boulder Metro Area for the month of October was about .9 months. Arvada had only .2 months and Westminster and Northglenn both had about .4 months….. that is less than 2 weeks worth of inventory!
MANY of the cities in the Denver / Boulder area currently have less than one month of inventory. Now, we were already in a Seller’s market, so why does this matter? The real estate market is based on supply and demand and when supply goes down, demand increases, and home values go up. For those who have been waiting to purchase a home, my advice is do NOT wait any longer! Why? Well, in Us News & World Report’s Annual Best Places to Live in America, Colorado cities snapped up 4 of the top 5 spots…. Yep, you read that right. Boulder snagged the number 1 spot, followed by Denver at number 2. Austin, Texas grabbed the number 3 spot, followed by Colorado Springs at number 4 and Ft. Collins hit the chart at number 5.
Colorado has long been a popular destination for people looking to make a move, but we now have new factors in play. COVID 19 has led to more people working remotely than ever, and with that, comes freedom. Freedom to pick up and make that long contemplated move, and with interest rates still near historic lows, relocating to one of the “Best Places to Live in America”, suddenly becomes a no-brainer. It is becoming evident that the influx of people moving into Colorado is not going to slow down any time soon. No market uptrend will last forever, but with the combination of low inventory, the desirability of the Denver / Boulder area, low interest rates, and the ability for more people to work remotely, prices are going up and up, and I don’t see them coming down any time soon. I don’t make market predictions, but based on the current market factors, if you are waiting for the market in the Denver / Boulder Area to go down before buying a home, you will be waiting a long, long time….
If you have questions about real estate in the Denver / Boulder Area, please contact us. With this fast moving market, home values are constantly changing. Contact us to get an up-to-date market analysis to pinpoint your home’s current value. Worried you don’t have enough money for a down payment? There are programs out there that can get you into a home for as little as $1,000, depending on credit and other factors…. contact us, and we can connect you with a lender to explore your options.
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