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.