Denver Metro Real Estate : Denver real estate | Is the Real Estate Bubble Going to Burst?

Real Estate Ideas and Solutions Real Estate trends in and around Denver. Highlands Ranch's advising experts

Denver real estate | Is the Real Estate Bubble Going to Burst?

DENVER housing market – Denver real estate is expensive and it just keeps getting more so, which has many people asking: Are we in another bubble that’s about to burst? The quick answer is No, here is why.

Since the last housing bubble burst with the great recession in 2007 or so, Denver's economy has recovered better than most cities its size and home prices have increased by 60 percent on average, with some neighborhoods closer to 200 percent. The average sale price of a home in the Denver area was $439,161 in April, a new record high that puts home prices at 40 percent or more above pre-recession levels.

There’s no bubble or anything like that.

Though home prices have been quickly rising, we’re not seeing some of the other warning signs that were present before the housing crash 10 years ago. We’re a very healthy market, The underlying fundamentals of the market are different today versus then.

One major difference is the number of foreclosures. Denver saw a slight uptick in the number of foreclosed homes last year, but we are still far below what we saw at the height of the housing crisis. In 2007, for example, Denver processed more than 8,000 foreclosure cases. Last year, that number of Foreclosed homes in the Denver area was just about 720.

We’re looking at financially healthy homeowners, The number of properties in jeopardy of being potential foreclosures…it’s just not there.

Even Though we’re  NOT in a bubble, there are some signs that the market will stay the same for a while. The number of sales that make it to closing is down year-over-year and There is an increase in the number of buyers who back out after a home goes under contract.  Many agents may be writing many offers at above asking price before going under contract making it frustrating just getting a home. While the buyers are looking the homes just keep on going up in price with bidding wars. Some areas are going up 10% in a month.

A big reason for that is the high prices in the market right now and the fact that there just aren’t a lot of homes to choose from. Buyers often have to settle for homes that don’t have everything they want or need. These buyers are smart knowing that they will gain equity enough to get the home they want in a few years with those renting may never be able to afford a home. 

Increases in home prices are outpacing income growth in the metro area and that trend simply isn’t sustainable, as home ownership gets further out of reach for many people. Kenna Real Estate has many buyers that waited for prices to come down and now they can not afford to buy a home. 

Most Denver Realtors in the real estate industry are hopeful that Colorado’s construction defects bill, which just cleared the legislature this week, could relieve some pressure and bring the market down to a more sustainable growth rate of 4 to 5 percent.

The law as it currently stands makes developers reluctant to build new condominiums because of the risk of a lawsuit if something goes wrong. Many developers opt to build rental units instead.

The price of a condo tends to be less than a single-family home – currently a median of $270,000 for a condo, compared to $420,000 for a single-family home – so building more of them could help with the inventory shortage in the lower price ranges. First time home owners now have to start with a condo. 

We have a housing shortage and we have a real problem especially in the lower end.  We need more affordable housing and we need developers to build more entry-level product. This is unlikely since most builder start in the low $400s. After the lot and upgrades a low end new home is in the high $400s to the low $500s

The construction defects law passed both the House and the Senate and now awaits a signature from Governor John Hickenlooper.

My suggestion is that you need to buy a home now and get in the game. This home will increase in value so in a few years you can use your equity to buy your dream home.  

Contact Me now to and start building equity.

 

First-Time Homebuyer Programs

Take Advantage of Being a First Time Homebuyer

Buying your first Denver home is an intimidating and sometimes overwhelming experience, but it comes with many advantages. Our programs are designed to help you take full advantage of these benefits which make your home more affordable, provide additional funding options, and much more!

Find Out Which Programs You Qualify for Here >>>

First-time homebuyers have access to special loan programs with low down payments, subsidized interest, and a limit to the fees that a lender may charge.

First-time homebuyer loans often offer a reduced down payment from $0 to 3%.

Government mortgage insurance available to new homeowners can reduce the risk to the lender resulting in their ability to charge you lower fees and downpayments.

Low-income first-time homebuyers may qualify for subsidized interest programs.

 Brian Burke Realtor 303-710-2609  Highlands Ranch, Lone Tree, Centennial Greenwood Village, Littleton, Denver

    View homes with current updated information including Foreclosures on your Phone or IPad

Commercial ListingsDenver Equestrian PropertiesDenver Golf Course HomesDenver HUD HomesDenver Heritage Homes

Denver Land for SaleDenver Luxury HomesProperty Management
Denver Light Rail HomesTownhouses & CondosDenver Short Sales
Denver Tech CenterDenver Green Certified

 Contact us now and see how we set ourselves apart from other REALTORS® 

9360 Teddy Lane #202 Lone Tree, Colorado 80124


  EXPERT REALTORS® TRAINED TO HELP YOU MAKE A GREAT INVESTMENT    Telephone_2 303-955-4220

Disclaimer: Kenna Real Estate®does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.  MLS IDX Information on the Kenna Real Estate® represent the opinions and ideas of the author(s) do not express the views of Kenna Real Estate® or those of the broker. Copyright® 2014  All Rights Reserved Kenna Real Estate®


Protected by Copyscape Web Copyright Protection Software

Creative Commons License

kenna_logo_denver_real_estate_200
Denver Luxury Foreclosure Expert REALTOR® = Investment Opportunities by Brian Burke - licensed under Colorado Attribution-Noncommercial- Works 3.0 United States License.
 
FIND OUT WHAT YOUR HOME IS REALLY WORTH | FEEE REPORT EMAILED WITHIN 24 HOURS

     FREE HOME MATRIX | FREE HOME MATRIX | FREE HOME MATRIX | FREE HOME MATRIX

                            e-PRO logo

 

Comment balloon 1 commentBrian Burke • May 05 2017 02:27AM

Comments

Thanks for sharing this information should be useful to the right person hopefully creating business for you.  

Posted by Charles Stallions Property Manager, Pensacola, Pace & Gulf Breeze Property Management (Charles Stallions Real Estate Services) over 1 year ago

Participate