Improving Denver economic market may impact local real estate
According to housing experts, Denver will soon see some light at the end of the tunnel. Houses for sale in Denver may be removed from the market at an increased rate in comparison to national averages, and values are remaining relatively high.
Large market indicators are showing Denver as either mirroring national averages or significantly more positive. The unemployment rate has increased from 2002, when the nation was in an economic boom, but it continues to follow national trajectory. The houses for sale in Denver are priced higher than the norm in most metros in the U.S. The median home price of a single-family detached residence in Denver was $230,000 in 2011 – much higher than the national median of $165,000, reports the Denver Post. However, housing demand is a bit lagging.
"Aside from housing demand that remains low and is well under historical norms, most other economic and housing indicators appear to be springing to life. At the top of the list are the numbers of jobs added to payrolls locally this past year. Nothing else will cure the ills of consumer confidence and home buying sentiment than strong job creation," said John Covert, director of Metrostudy’s Colorado division.
Job creation is just what the market needs, which is why the 33,700 new jobs added to the payroll of major Denver employers in the past 12 months will further improve the housing and economic outlook for the area, according to MetroStudy.
"There are signs of life in the industry this year as new home and apartment permits are reaching their highest levels since the recession began," continued Covert. "While renewed optimism is somewhat warranted, the cold reality is permit levels are still far below the peak as well as historical norms."
To correspond with the increase in jobs, there were 1,049 new homes built in the first quarter of 2012, a 44 percent increase from last quarter and a 28 percent rise in comparison to the same time last year, according to MetroStudy. In addition, there were 4,029 new homes in inventory waiting to be sold, down 13 percent from a year ago, but up .6 percent from last quarter.
The improving market makes finding a home on the MLS listings in Denver an attractive opportunity for many buyers in the near future.