Metro Denver retained its third-place ranking among the country's hottest residential real estate markets in April, according to a report from the National Association of Realtors.
Metro Denver continues to grow at a crazy rate and I continue to get asked, “When is it going to stop?”, or “When is the housing market going to crash?” because as we know from history, everything cycles.
Well, I absolutely don’t know, and I sometimes wonder if anybody really has the answers unless they have the amazing power of seeing the future. I know there are signs that business people look for that have much more training in that area than I do.
What I do know is this…Denver continues to grow. In 2015, Colorado’s population grew 101,000 according to The Denver Post Business.
In 2016, the Metro Denver Economic Development Corporation reports that the following companies will either be expanding their campuses, fulfillment centers, employees, production, etc. or moving their business to Colorado:
Amazon.com, Trustpilot, Artisan Talent, Flux Resources LLC, VIPER – Comcast Corp, Poetic Systems, LogRhythm Inc, Viega LLC, Partners Group, KMLabs, Twitter, Virgin America, World Trade Center Denver, TIAA, Intermap Technologies Corp, DISH Network, WeWork, World Wide Technology Inc, Sierra Nevada Corporation Systems, Remote Learner, Svelo Inc, Zillow Group, Reed Group Ltd, Vestas, General Assembly, Agrium.
The Denver Post Business reported that Google will be building a 330,000 square foot Boulder campus with room to employ 1500 employees
With a competitive environment, sound transportation infrastructure, and low operational costs, Metro Denver is home to some of the country’s most successful and diverse companies.
What this also means, is that people need a place to live. And when there’s fierce population growth and not so fierce housing production, the lovely theory of supply and demand kicks in: the state where as supply increases, the price will tend to drop and as demand increases, the price will tend to increase. Well….there’s not that much supply and there’s tons of demand.
For instance, in the Stony Creek Neighborhood, sales happen quickly. The houses are in a price range that are fairly affordable for first and second time home buyers and it’s a lovely neighborhood, close to amenities, mountains, highways, etc. So, in the past 5 years, when properties have gone on the market, people have clamored to buy them, driving the prices up. Below is a graph of Sales Prices in Stony Creek over the past 5 years.
Based on information from Metrolist®, Inc. DBA RECOLORADO® for the period 04/30/2011 through 04/30/2016 Note: This representation is based in whole or in part on content supplied by Metrolist®, Inc. Metrolist®, Inc. does not guarantee nor is it in any way responsible for its accuracy. Content maintained by Metrolist®, Inc. may not reflect all real estate activity in the market.
You can’t help but notice have prices have increased…a lot!
So when people ask me if they should buy now or just wait until the housing market cycles, I don’t know. How long are you willing to rent and when the market cycles back down again, will it still keep you from buying because you waited so long that the market will never again get down to what was once affordable for you? These are questions you need to ask yourself.
As it looks to me, I don’t think the cycle is going to change for a while.
If you or someone you know is looking to buy or sell real estate, I'd love to help them. Referrals are the greatest compliment I can receive and I promise to provide them with excellent service. Just call Julie! 720-260-1180 Julie Billeisen, Broker Associate, The Brian Petrelli Team, Metro Brokers, Inc.
Comments(0)