It’s that time again. Time to look back and to look forward at the same time. The end of one year and the beginning of another is a time for reflection in our culture, so let’s dive in…
Just because 2020 is behind us does not mean we will see a rapid change in what’s been happening. Expect demand to continue to out pace supply in Denver’s Residential Real Estate Market. There is simply too many market characteristics encouraging buyers to dip their feet into this market. Rates are low, demographics are right, Denver’s geographic presence on the map is perfect (Being 500 miles from nowhere has advantages!), and the economics along the I-25 corridor from Wyoming to New Mexico is chocked full of opportunity. In my career I’ve seen a market like this just one other time, and it did not last nearly this long. Additionally, this corridor is the geographic center for the Rocky Mountain Region. Tourism, Transportation, Distribution, Access to Capital and Job Growth all center along the front range to the north and south of Denver.
Here are the headwinds facing this market. Affordability is number one. We are starting to run up against some economic resistance to home prices. #2 Would be taxes. Government is very good/bad at spending efficiently, and eventually, it will have to pay the bill. Long term, taxes will become a factor., and they never seem to go down. #3 Is and will be other, lower cost markets. This has been going on for years, but with Affordability and Taxes playing a much more defined roll, external competition will be a distraction for some new jobs/employers.
As we can see from this weeks MLS Data, not much has changed from weeks past. Demand out paces supply again, and not only that, but it out paced in dramatic fashion. These numbers will mean more in a couple of weeks. Please come back each week and keep up with the Denver Market.
|New Listing (436). Incredibly low number here!!! We need inventory!|
|Coming Soon (95)|
|Back On Market (152)|
|Price Increase (346)|
|Price Decrease (162)|
|Pending (766) Considering it’s the partial first week of the year, demand is strong!|
|Closed (1272) Closing out 2020 with a nice healthy number here…|
Finally, Dee and I had a great 2020. We stayed healthy, we sold a bunch of real estate, we spent a crazy amount of time with family, and we enjoyed the outdoors of Colorado and Utah. If you have not visited the National and State Parks in Colorado and Utah, they are magnificent! As soon as we get this Covid Monkey off our backs, we hope to do even more visiting of our national treasures.
In the meantime, please accept our thanks for all the referral business you bless us with every year. It is our honor to be your trusted advisor. Play it safe, and until we meet again let’s make the world a better place…tc2021