Denver Post: Housing-bubble Concerns in Denver Likely are Overblown for Now

Aldo Svaldo wrote a good piece in the Denver Post on December 12th regarding Denver housing market.  READ HERE

I wrote about this subject a few of months back (Housing Bubble?).  The experts sited in the Post article reach the same conclusion — that we are not in a new housing bubble, and that we’ve got more room to grow.   There are lots of reasons cited to support this conclusion. The reason I keep going back to is inventory.  Last spring we had a drastically low inventory of homes available coupled by a spike in buyer demand caused by a sudden increase in interest rates.  The buyers were all racing to buy a home with those super low rates.  This caused prices to increase very quickly because of the high demand and super low supply.

Now the inventory — although very low — is creeping up and I predict we’re heading into a more balanced market.  There are still lots of people who have waited for prices to recover before selling.  Home affordability is still extremely low so we will see a steady stream of buyers as well.  I predict a gradual rise in prices over the next year or so, which is healthy.