After years of month-to-month rising prices and record low inventory, the Denver housing market is beginning to moderate.
A recent market report showed the average home price decreasing 1.48% over the previous month, to $529,124. Meanwhile, inventory reached a 3-year high.
This comes as welcome news to buyers formerly facing a market so hot that bidding wars broke out, cash offers abounded, and inspections were waived in order for buyers to remain competitive.
Experts surmise that one of the reasons for the cooling trend is that home prices were becoming unaffordable for many Coloradans. Another factor could be an increase in available apartments.
A study by RentCafe, an apartment search website, noted that while Denver’s population rose 1.3% in 2018, apartment construction increased “a staggering 150%.” This puts the city third in the nation for such activity, just behind New York City and Dallas-Fort Worth.
One of the reasons for the jump, according to RentCafe, is that “some 2017 deliveries got pushed back into this year because of the lack of apartment construction workers.” The market is catching up to projects already on the books, in addition to new ones.
Whatever the reason, Denverites will be happy to have more housing options in the months to come.
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