Colorado Real Estate Market—What's Going On and What's Next?Posted on Aug 03, 2017
Since the great recession and house bubble burst in 2007, Denver and Colorado have made a surprising comeback. According to a recent article from the Denver Post, Denver has recovered better than cities of similar size. Housing prices are up by 60% and some neighborhoods in Denver and around Colorado have even seen a 200% increase.
These price increases indicate a couple of things. Colorado is a great place to live. People want to work and play here. But for many, the prices steady increase has them asking, "Is the market in Colorado about to experience another bursting bubble?"
According to Steve Danyliw, a Denver-area real estate agent and the chairman of the Denver Metro Association of Realtors Market Trends Committee, there is no need to panic. He believes there is no bubble. He explains the market is healthy and many of the warning signs that existed before 2007 are not present now.
A major indicator of a market about to collapse is the number of home foreclosures. The Denver Post article indicates that in 2007 there were more than 8,000 foreclosures in Denver. Last year, there were only 720. These numbers show that the current home buyers and home loans are healthier and more stable.
Still, the prices of homes are growing faster than the average income growth which isn't sustainable. Danyliw expects home prices to go down in the next few years. He also hopes a new bill which just passed, the Construction Defects Bill, will take some of the pressure off of builders. This bill will encourage builders to build condominiums instead of rentals, which creates more homes at the entry level.
For more information on Denver and Colorado real estate, contact us at Team Lassen today.