Colorado Housing Market Update

The Housing Market in Colorado

Let’s  take a quick look at the main factors determining Colorado’s housing market; Unemployment, Prices, Affordability, Confidence, Interest Rates, Distressed Home Market, Vacancy Rates, and Absorption.

Unemployment in Colorado is at 7.8% compared to the National Average of 8.3%. At this level, Colorado has one of the lowest unemployment rates and is trending down. This is creating greater confidence in the overall market.

Home prices in Colorado have increased slowly, about 2.2% is all, but is expected to continue to increase as this market improves.

Affordability is at an all time high in Colorado. The rental rates are way up and prices are way down, that along with record low interest rates make buying a house in Colorado incredibly affordable.

Colorado’s distressed market is decreasing at a rate that was unexpected. We are now at 2006 levels and dropping continuously. There is the matter of “phantom inventory” of foreclosures that still threatens to increase these numbers and is yet to be determined. This is something to keep an eye on.

The vacancy rates are at a record low in the Metro Denver area. This means that there is real demand for rentals. This makes investment home buying very attractive.

Absorption Ratios deal with the ratio of homes on the market compared to homes sold. It shows, along with other things, how much active inventory we see and how long that inventory of homes will linger on the market. Colorado is seeing low absorption ratios and that means our inventories are dropping faster than expected. Average Days On the Market, DOM, is down 15% over last year!

Another key factor is that there are many buyers and sellers dealing with multiple offers. This means that buyers cannot expect to come in with “low-ball” offers anymore and sellers can expect prices to climb.

There are positives to both side of the transaction, buying and selling. But one thing is clear, these factors all point to one thing, the shift is on from a buyer market to a seller market. Hold on and happy buying… and selling!

Watch this video to get a more detailed explanation of each of these factors. Or you can always contact me directly. Jeff Hansen, RE/MAX Professionals.

About Jeff Hansen, Realtor in Colorado

Search for homes here; www.jeffhansen.remax.com for FREE. Licensed Real Estate broker with RE/MAX Professionals at 10135 W. San Juan Way, Littleton, Colorado 80127. I have been a Realtor Since 1992 and provide Free Real Estate Advice Realtor in Littleton, Colorado and the Metro Denver Area, A Real Estate investment company focusing on the buyers and sellers of homes, also including fix and flips and rental properties, Listings and all sales of realty. (303)794-4530 Disclaimer I will not receive any compensation or take on any liability because of any conversation on this or any related web page w/o any written brokerage agreement. And there will be no relationship actual or implied because of any conversation on this or similar pages. No written agreement, therefore. AND Differ from state to state, so check your state's rules.
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One Response to Colorado Housing Market Update

  1. Devin Haren says:

    Unemployment rates these days are so high. we really need some economic bailout. :

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