DENVER —
CONTENT SPONSORED BY Corken+ Company
Get ready... Low mortgage rates will continue to strengthen home buying demand. With less inventory and existing homeowners deciding to stay put, fewer homes will come on the market in 2020. Sellers will wonder where to move after their home sale.
More demand and less supply will mean bidding wars will rebound in the first quarter of 2020. Redfin expects that every 1 in 4 offers will face bidding wars in 2020 compared to 1 in 10 in 2019. This increase in competition will push year-over-year price growth up to 6% in the first half of the year, considerably stronger than the 2% growth seen in the first half of 2019. With over 20 years of experience in the Denver Metro market and "boots on the ground" Lori Corken, owner of Corken+ Company, can personally attest to Redfin's predictions for the coming year.
So how did we get here? The inventory of homes and condos available for sale in the Denver Metro area plunged 27.99% from November to December with record monthly declines. These reports come according to three Denver Market Trend Reports from the Denver Metro Association of Realtors. The typical drop in inventory of homes and condos for sale from November to December is 11.77%. So, it is clear that the 27.9% drop was off the charts, and came despite the 1.7% drop in monthly sales.
“New builds” offer no immediate resolution. Housing production has a long way to catch up after the recession, with a shortage of building materials, shortage of labor, and the lingering economic effects (cost of goods) of the crisis according to NAHB (National Association of Home Builders).
But fear not, there is a silver lining - supply and demand is predicted to become more balanced later in the year as more listings of new and existing homes hit the market, allowing price growth to moderate to 3%. Buyers, sellers, and realtors alike can only hope for such growth in 2020. We may not have been gifted a magical genie this new year, but may we all hope our real estate dreams come true.
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