Recent housing studies name Denver one of the top overpriced housing markets in the country. Whether you are a buyer, seller or renter in the Denver market, it is important to recognize the stages of a new housing bubble if one even exists. The latest Denver real estate news illustrates why it’s still possible to enjoy home appreciation in an “overpriced” real estate market. An article by CNN Money points out a theory that some real estate professional rather ignore: the demand for legalized marijuana impacts housing prices. In 2012, as most people know, Colorado legalized marijuana. Another CNN Money piece reports the median home price difference in Colorado between 2008 and 2015 is up 33.92 percent.
On one hand, there are people moving to Colorado who want to legally partake in marijuana. Also, experts say legalized marijuana has added jobs to the local economy which is good for housing. Existing businesses that service new “green” businesses also enjoy expansion. In addition, Denver is home to new technology jobs.
Hot rental market
For people who rent in Denver, housing costs continue to climb. Renters need to consider whether they will come ahead financially by buying a home as opposed to renting. Some of the advantages of being a homeowner even in a so-called overpriced market is predictability in housing costs. As market rent increases, the cost of owning remains fairly stable. Home owners do experienced some fluctuations in property insurance and taxes, but typically come out ahead compared to renters.
Some people wonder how long the real estate buzz will last. According to CNN, the Denver real estate market could grow for another five to seven years. In a typical real estate market, there are more than 20,000 listings in Denver. At this point, potential sellers can only find about 4,000 listings, experts say. As far as a housing bubble, no one really knows unless they are reviewing housing data in retrospect.
Even if other states legalize marijuana, there are too many other draws to Colorado. People love the mountain views from their Denver lofts. They love being able to go hiking, visit wine bars and art galleries or try a new craft beer in a hip downtown neighborhood. At Downtown Denver Realty, we love Denver for all it has to offer. We help our clients sell their homes often above asking price. If you are looking to buy, we can show you around all the hip Denver neighborhoods so you lock in at what could be the start of a Denver housing boom.[idx-platinum-widget id =”9594-30700″]