Inventory of homes falls in Denver
Those looking at homes for sale in Denver can expect prices to continue to increase as the inventory of available homes is currently on a rapid decrease. The Denver Post recently cited an industry report that revealed housing inventory has fallen by nearly one-third in the Denver metropolitan area over the past year. The report additionally indicated the decrease is visible across all three price tiers.
"Contrary to other similarly affected metro areas, the inventory reductions in Denver are fairly even across the board," journalist John Mossman reported in The Denver Post. The inventory for all homes decreased by 31.7 percent, with a 32.3 percent drop in the bottom-price tier, a 32.5 percent drop in the middle tier and a 30.8 percent drop in the upper tier.
Denver versus the US
Nationally, inventory rates decreased by 19.4 percent across the price tiers, which indicates that the Denver housing market is significantly above national recovery. The source detailed that the decrease in inventories and the increase in demand is spurring a rise in home prices as well, which is a positive sign for housing market recovery.
This could complicate things for first-time buyers, however. An industry expert explained to The Denver Post that a falling inventory can mean a significant portion of investors will swoop in to find a deal. As investors can often close sooner and pay in cash, banks and homeowners looking to sell often view investors as favorable to first-time buyers.
"So far, 2012 is proving to be a 'breakout year' for residential real estate despite ongoing problems for financing new-home construction," a national housing economist said in Denver on October 15, according to The Denver Post. Buyer interest is currently outpacing the supply of available homes and homebuilders continue to have difficulty financing new projects due to credit restrictions.
Buy now or later?
The source cited Tom Clark, chief executive officer of the Metro Denver Economic Development Corp., who warned against a potential halt or slowing of economic growth with the coming of federal spending cuts that are scheduled to occur on January 2.
"Metro Denver's real estate market has been strengthened by a wave of job expansions and corporate headquarters relocations," Clark said, adding that the Denver metro area is one of the top migration destinations in the country for people in the age group of 25 to 34 years.