I don’t have to tell you that the home buying process is filled with questions: Is this neighborhood safe for your children? How expensive will it be to renovate this ’80s bathroom? Can you deal with the neighbor’s penchant for garden gnomes?
But more importantly, you might find yourself agonizing over whether now is the right time to buy.
How can you be sure your home is a true investment? Has the Denver housing market reached its peak?
I hear you! It’s no secret that Denver has been experiencing an especially competitive market as of late. In fact, Colorado’s current housing market means the longer you wait to buy — the more likely prices will go up.
How do we know this?
It all goes back to good ole supply and demand. Denver’s housing market is currently what we call a seller’s market: available homes are low and demand for those homes are high.
Remember back in economics class when you first saw the supply and demand graph?
In short, when the quantity of inventory (in this case, houses on the market) is low and demand (the number of home buyers) is high, prices rise. We’re seeing this play out in the Denver metro area especially.
It’s taking homes in the Denver area only about 1 month to sell after being listed. Hence, the term seller’s market. It’s awesome to be a seller right now and be able to find a buyer within days. It’s not so awesome to be a buyer competing with others for your dream home.
Since the closing process typically takes 1 to 2 months, it’s practically impossible for homes to fly off the market faster than we are currently seeing.
What does this all mean?
The time to buy is now. Home prices will continue to rise, which will translate to a return on your investment. If you wait to buy, you will likely end up paying more.
How can we be so sure? Colorado’s population boom — which has contributed to the competitive seller’s market — is slated to continue. As The Denver Post reports, “Colorado’s population could increase by nearly 3 million people by 2050.” That would mean the state would more than double in size compared to 2015.
And though some project this year’s housing market may slow compared to prior years, “home prices are still expected to rise faster than inflation.”
So there you go: no need to wonder if now is the time to buy — the answer is a resounding yes! As for dealing with your potential neighbor’s garden gnomes, that’s a question only you can answer.
Contact me today to start the search for your dream home.