If you keep up with our blogs, email blasts, or monthly newsletter, you know we talk a lot about how well the Colorado Real Estate Market is doing, especially in the rental sphere. And why not? Denver is one of the hottest markets in the US for buying and renting, with demand far outweighing the supply; the nation’s top builders, such as Toll Brothers and Lennar Corp, investing in building apartment communities as rentals; and the population bursting at the seams as more and more people find themselves moving to the Mile High City and other places in Colorful Colorado.
And if you look at a few stats over this year alone, it’s easy to see why Colorado is such a hot market.
Between February 2014 and February 2015, Colorado home prices rose 9.8%, and in June, 2015, the average residential property sold for around $377,550! And although we’re moving away from the fast-paced market of the summer, the Real Estate Market in Colorado hasn’t slowed entirely. Since entering the slower winter months, people looking to buy have found little to no competition and often go under contract without competing offers, and prices have started to drop. And according to an article on HousingPredictor.com, homes between $200,000 and $400,000 are seeing the most competition.
Switching over to the rental side of things, rents have outpaced the majority of other US markets across the nation. Partnering with RentRange, Real Property Management Colorado found that rents have risen about 13.9% in the 3rd quarter of 2015, while nationally they only rose about 5.7%. These numbers were limited to 3-bedroom, single-family homes in the US, but even then that’s significant data. The average rent for a 3-bedroom single-family home was about $1,998! And while that’s great news for landlords, it’s best to keep in mind that the higher the rent, the longer the potential vacancy rate will be, as rents have way outpaced the average renter’s wages.
So then what’s causing Colorado’s Real Estate Market to boom?
- According to HousingPredictor.com, Colorado’s legalization of marijuana is a huge factor. With the legalization of marijuana, Colorado saw an increase in jobs and people drawn to the area, which, of course, hikes up the demand for the already shortened supply of places to buy and rent.
- Colorado home values have increased 12.8% over the last year, while many predictors suggest it will keep rising.
- Homes don’t spend very long on the market. The reason for this one is simple economics: the demand outweighs the supply.
- Multiple nationwide builders have entered the Colorado market, ramping up new home construction both to rent and to sell.
According to these stats and more, Colorado is the place to be!
Check out the article from HousingPredictor.com here: http://www.housingpredictor.com/2015-colorado-housing-market/