If you’ve watched the news lately or read the Coloradoan, it is hard to miss the fact that there’s a fear that Colorado is headed into a real estate bubble. Personally, I’ve seen an uptick in home prices, even with fewer homes on the market. Colorado, as a whole, is experiencing some issues with home and apartment vacancies.
Is Colorado heading into a real estate bubble?
I say no; simply because there is an enormous demand for housing, but the available units are in short supply. Home values are expected to grow in the Denver-Aurora-Broomfield by 9.3 percent in the next 12 months. Boulder was ranked No. 9 with a predicted 8.4 percent increase in home values. Denver came in third nationwide with a projected 9.3 percent growth rate. Colorado is not experiencing a real estate bubble.
What is happening with Colorado Properties?
Colorado is experiencing a supply and demand problem. There are too many buyers and renters and not enough apartments and homes on the market. Most counties from the Denver Metro area northward saw growth around 1.5 percent or more. It may seem small in numbers but anything between 1 and 2 percent is still growth and further squeezing a short supply of available housing.
Are contractors expected to build new homes?
Here is where it gets tricky: There are new developments in the works across the state of Colorado. However, contractors are willing to build homes for people who have signed a contract guaranteeing payment. Contractors are not willing to manufacture homes first and sell them later because five years ago some of them lost a ton money in the housing market. These financial losses made them leery and unwilling to alleviate the strain on today’s housing market. In other words, if you do not have funds wary contractors are not going to build you a home.
Is there any good news?The bad news is that you will have to wait in line with people who are also looking for a place to call home. The good news is that Colorado and it’s counties are sustainable and at near capacity. You should begin any rental or buying search as early as possible to get everything on your wish list.