The housing market in Denver is on fire and has been for a while even during the pandemic.
No one knows why a particular city experiences a housing market boom. Sure, experts can point to various factors, but it's never a sure answer. Nonetheless, Denver is going through a boom, and it's exciting to see the market be this hot.
The Denver Metro Association of Realtors or the DMAR paid attention to the numbers and realized that a home in this city doesn't sit on the market for weeks. It sells in just five days, and that was in January.
The demand is so high that the price of an average home rose $100,000 in one year. An average home in this city was worth about $530,000 in early 2020, and it's now worth about $629,000, which is a trend that seeks to be picking up speed according to DMAR.
People want to move to this city, and the inventory in the metro area of this city is a little lower. Realtors in this area are happy to see this and can't believe there was a time when things were bad. Back in May 2008, there was a total of 26,000 homes for sale without any buyers. Of course, this horror story was just a fraction of what the country was going through with the great housing crisis that plunged the country into a recession.
Times have changed. At the moment, there are no more than 1,200 homes for sale at a time.
Why are people relocating to this city? That's a big question. A lot of the folks moving into the city are from places like Washington, D.C., California, and New York. These are highly populated areas where there's almost no room to live. It seems that a lot of people are tired of living in highly populated areas where they have to pay so much to live there.
More than that, the pandemic has given rise to location-independent folks. For some time, people were stuck in the cities they worked in because that's where their jobs were. That's no longer the case because of the work-from-home trend, which is giving people the freedom to move wherever they want even if they work for a company based in New York City.
Some worry about these Denver inflated prices and for good reason. It's reminding people of the bubble the housing market was experiencing before the housing crisis.
Still, many realtors and experts in the city say that this housing market boom is different. It's different because that 2008 bubble used mortgage fraud, and that's not what's happening here. In this city, the demand is simply high, and the supply is very low.
It should be pointed out that buyers are going to have a hard time finding a house since the market is being flooded with people who want to move into Denver. Developers are trying to figure out what they can do to give those people more choices than there are now. This is a market to keep an eye on to see where it goes.
