There are more homebuyers entering the Denver area housing market because of continued improvements in the job sector and larger economy than there are houses available. Indeed, according to the National Association of Realtors® (NAR), new home construction is lagging behind job growth in about two-thirds of metro areas in the U.S. Therefore, the Denver area is one of many such areas that are said to be a "sellers’ market." Here at Colorado Home Sales, we offer you some information about the current housing market in our area. And while we understand and respect the numbers, we also have plenty of Littleton
, CO homes for sale for you to look at.
Define Sellers’ Market
A sellers’ market can occur when a shortage of homes increases competition among buyers. It's the result of an imbalance between the number of homes listed for sale and the number of active buyers in the market. Under these conditions, houses tend to sell quickly and for a high percentage of the asking price – or even more than the asking price. Home values tend to rise more quickly in a sellers’ market. So inventory shortages have pushed property values way up the scale.
A buyers’ market is the opposite and occurs when there are many homes listed for sale but few people buying them. In this scenario, properties tend to stay on the market longer and sellers may have to accept less than their initial asking price. Whether you are in a buyers or sellers housing market
, you will notice the difference that makes in home prices.
New Construction is Lagging
In the wake of the housing crisis, U.S. home builders scaled back on new development. And while construction has risen since then, they both are still lagging behind present job growth. The labor market has recovered and is much improved since the recession, but despite this positive trend, new home construction is still insufficient in many cities. This, of course, is causing inventory shortages in housing markets and forcing buyers to compete for homes.
In 2015, NAR measured the number of new homes being built in 146 metropolitan areas across the United States relative to the number of newly employed workers in those same areas. They wanted to find out if home building has been keeping pace with steady gains in the job market over the last few years. Their findings show that new home construction for all types of housing is “underperforming” in about two-thirds of the metro areas that were examined.
What does all this mean for you, the homebuyer? Get preapproved, have your financing lined up, and be ready to make a strong offer. At Colorado Home Sales
, we are ready to assist you in your home purchase. We work aggressively with homebuyers to compete in this competitive sellers market. Whether you are buying, selling or renting, we are your local, one-stop real estate company. Contact us today at 720-220-2059