Monica’s Monthly Minute- Denver Real Estate Market Update

Happy New Decade! If you are new to my monthly minute, WELCOME!
My goal with this newsletter is to provide you timely updates on the Denver Metro Real Estate Market that are applicable to you and your real estate interests. If you have any questions or feedback, please don’t hesitate to send me a message.
I look forward to hearing from you. – Monica
January 2020 Video
How has the market started for 2020?
Click HERE to find out.
Real Estate News – What to expect in 2020
The questions I’m asked most often these days are variations on the following: “How long is this strong market going to last?” “Are we at the top of the market?” or “Is the market going to crash any time soon?” This month I’m going to give you my thoughts on where I think we are in the market. The short answer is that we haven’t reached the top, and I expect the strong seller’s market to last for a good long while, probably several more years. Here’s why:
  1. Inventory of Homes for Sale. The Denver Metro market has about 3.2 million residents. A community this size will have a balanced market when it has an inventory of 16,000 – 18,000 properties for sale. Today we have about 7,400 properties available; 5,300 Detached Single Family Homes and 2,100 Attached Single Family Homes, which is why it’s such a strong seller’s market. There are simply more buyers than sellers right now, which is leading to continued price increases. And it’s not just recently our inventory has gotten so low, it’s been falling steadily since 2007 when we peaked at over 31,000 properties on the market. In my opinion, the inventory of homes for sale is the single best indicator of how strong the market is. With such a low housing inventory, our seller’s market will continue for the foreseeable future.
  2. Interest Rates. Interest rates rocketed upwards in the spring of 2013, and every real estate expert imaginable declared the era of low interest rates over. Well… they all got it wrong. Today’s interest rates remain near 50-year lows with the par interest rate hovering just above 4%. Many of the buyers who are taking advantage of these low rates have rented for the past several years and are now finding it more affordable to purchase a home than continue to deal with rent increases. To see if you should consider buying a home, check out this awesome calculator Trulia put together; Click Here and see what your best choice might be. According to the calculator buying is cheaper than renting in the Denver Metro after about 2 years.
  3. Room to Grow. We still have lots of room for the market to grow and to sell more homes. Your Castle Real Estate did an analysis looking at the housing market for the past 44 years in order to see how we are faring today. The dotted line on the graph is the number of home sales we would expect in any given year based on the population of the Denver Metro. The solid line shows how many house sales there actually were every year. As you would expect, during downturns fewer people buy homes and during upturns more people buy homes. By looking at the chart, you see that we have had a fast rising number of sales the past few years up to 2018 and the number of home sales has settled down since then, but we do not appear to be anywhere near oversold given our increased population, like we were in 2004 for example. These long-term trends are often more important to consider than the short-term ones when it comes to real estate.
All in all, from the data we have, there are no trends to indicate a downturn in the market anytime soon. Please give me a call and together we can strategize your next move.
I’ve both bought and sold properties with Monica, and both experiences were wonderful! Monica is professional, knowledgeable, and truly puts her clients’ needs first. She suggested creative ways to negotiate contracts. She and her office manager, Maria, make a great team in meeting the needs of the  clients. I recommend Monica to anyone needing a realtor! We will definitely work with Monica for our next move.
  • Jenny, Denver, CO
Thank you so much for all of your support of referrals and repeat business. I’m honored! Thank you!
Monica Perez