There are many folks wondering why the real estate market in Colorado is running at such a furious pace. We are seeing record low inventory, record low interest rates, and massive competition for housing among buyers. In many cases, Sellers are being rewarded with multiple offers over asking price for their properties. But why is this happening???
First off, Colorado is a great place to live. As a 44 year old native of the state I can attest to the amazing amenities Colorado has to offer. Gorgeous mountains and world class skiing…YES. A vibrant downtown area represented by the 4 major sports teams…YES. A diverse urban population with many ethnicities and terrific pockets of unique and expressive cultures, restaurants, homes, and art centers, etc…YES. Four distinct seasons and 300 plus days of sunshine…YES. An International Airport and vibrant high-tech, petroleum and medical industries….you get the picture. But what is really behind the rise in real estate here?
I have a few theories for you to share with your friends. One, interests rates are at historic low’s, but that drives housing demand in most areas of the United States. Millennials (The next biggest population of real estate buyers) seem to love the diverse cultures and outdoor adventure Colorado offers and are currently living here and buying or moving to our state. In 2008 Colorado was hit hard by the housing bubble and many buyers (for good reason) stood on the sidelines and waited for the absolute bottom of the market before they purchased. The truth is the market here started to improve in late 2009 and many buyers that were on the fence waited for further drops and missed the bottom. Now they are scurrying to buy before prices get out of their reach (which is happening a lot now).
Those hurt by the market downturn in 2008…who’s credit suffered, had late pays on their mortgage, faced foreclosure/short sale or even bankruptcy are now beyond many of the imposed borrowing thresholds that keep people from getting loans. These folks are now back in the market, thus adding to the pool of buyers.
Lastly, and with no numerical data yet to back this up, I truly believe that recent legislation around the marijuana laws are lending our state to an influx of buyers and renters that we never had before. Yes, people are here to get high legally and need a place to live….There I said it. Regardless of your views on legalized marijuana, I believe this legislation is building housing demand in our state that cannot yet be supported with exact data. So, next time someone ask’s you about the rise in real estate in Colorado, here are a few talking points. If you or someone you know need help buying or selling a residential property, please let me know. We are experts and are happy to put our Team to work for you! If you have any questions or comments about this post or any others in the future, I welcome your comments.
Troy Johnson, Realtor. (303) 929-8954 or via private email at firstname.lastname@example.org