Market Update: What Natives Need to Know About Denver’s Market | 09.04.18
If you’re like me, you’ve been here for decades and seen our little city transform in just a few short years. I had two separate conversations yesterday with two Denver natives who essentially wanted to know when real estate is going to slow down.
Which is another way of asking “when are we going back?”
Lots of credible national and local statistics, as well as our own 5280 Magazine, suggests that we’re not going back.
Here are two things to know about why we’re on a forward path:
Housing prices have risen an average of between 9.5 and 11% each year for the last six years, according to a recent 5280 Magazine article. Why? We got discovered. Real estate is three things: location, location, location. We, natives, have always known we’re a great location, now everyone else does, too.
The housing market is a reflection of our economy. We now live in the 13th costliest city in the US, according to a study by the National Association of Realtors. Why? Our economy is
doing great! A Denver Post article from June 5th cites several studies that show we have the fifth best local economies in the nation and we’re in the top few for job markets.
Why will the housing market stay this way? It’s a real market. Unlike the 2008 real-estate-related mortgage-fueled crash, we have a real market. This just means that we have lots of demand (lots of buyers with money: a lot of which comes in from out-of-state), as well as a true lack of supply- houses. Construction is years away from keeping up.
Ok, so we’re probably not going back, but that doesn’t mean that going forward won’t be awesome! We’re the lucky ones- we have great memories of McNichol’s Arena and Celebrity Sports Center, as well as a 20-minute commute anywhere in Denver. But since those are all gone forever, I recommend grabbing your bike, hitting a bike path, and drowning your sorrows in a really good bowl of Pho.
Want to learn more about Denver’s housing market?
