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Real Estate Investment Denver Colorado

by | Jan 16, 2021 | Real Estate Investing | 0 comments

Real Estate Investment Denver: Why Real Estate Is and Will Be a Good Investment

Research trends continue to confirm that Denver remains a great market for real estate investing. Home buying and selling for individuals and families continues to be healthy. An increase in short sale properties continues to come on the market for individuals interested in out of the box real estate opportunities.

A review of real estate investment Denver trends for the next five years is addressed in this market update, as well as responding to the often-asked question, “is real estate a good investment?” If you’re living in Denver or considering moving to the Denver metro area, the answer is an unequivocal yes.

Real Estate Trend: Get the Facts from Realtor Sam Wilson

If you watch the news, you may believe that the Denver real estate market is in turmoil. Don’t believe everything you read if the information is unsubstantiated.

This real estate blog presents unbiased and balanced facts each month in our market report. While other outlets may give unsubstantiated information, Realtor Sam Wilson is a source for knowledgeable and trustworthy real estate information.

The information presented about real estate investment Denver is based on fact. The statistics presented are from the Denver Metro Association of Realtors, PWC (Pricewaterhouse Coopers), and the Urban Land Institute. The full reports are available by a link to a PDF document.

Home Sales Trends: Low-Interest Rates and Plenty of Homes for Sale

While there are fewer homes than “normal” currently for sale in the Denver metro area, there plenty of homes for sale according to Sam Wilson, Lakewood Colorado realtor. After home buyers took advantage of closing on December homes, there were 2541 homes available for sale at the end of the month.

Homes are currently available for sale in all price ranges and neighborhoods.  All styles, newer and older.  The 2541 number does not include all the brand-new builder homes coming online or available for pre-sale every single day.

The importance of working with a knowledgeable and experienced realtor who can provide a realistic market assessment is key to identify and close on homes in Lakewood Colorado, or the Denver metro area. The Sam Wilson Home Selling Team is your knowledgeable realtor in Lakewood Colorado.

Denver Colorado Real Estate Market Facts

According to the Denver Metro Association of Realtors (DMAR) January 2021 Market Report:

  • The number of residential homes listed for sale as of December 31 was 2541, a nearly 50% decrease vs. December 2019, and lower by 26% vs. November 2020.
  • 4807 homes closed during December, which is a year over year increase of 4.91%
  • Days on the market for homes is holding steady at 23 days
  • The average closed price is $547,461, with a median closed price of $460,000
  • Residential homes in the affordable price range (called the classic market) $300,000 to 499,999 are selling at rapid rates with average days on the market at 17 and available listings of 31,913 in 2020, decreasing by 6.6%
  • Residential homes priced between $500,000 and $749,999 grew in available listings to 16,980 in the year 2020 compared to 2019

Buyer Strategies for the Denver Metro Area Affordable Price Range

is real estate a good investmentLet’s relate these real estate market facts to practical steps you can use. Sam Wilson encourages buyers in the affordable price range to be thorough in the process of buying a home. One of the critical issues that many buyers face is the fear of competition.

While the competition for homes exists, the Sam Wilson Home Selling Team’s belief reinforces that real estate transactions are a significant financial investment that, while emotional, should also be based on facts that include market price and other factors. Sam Wilson is an expert real estate negotiator who helps home buyers and sellers make educated decisions about properties and move the deal to close.

Additionally, buyers should not cut corners by waiving inspections and home appraisals. Sam Wilson and realtors on the team offer real estate advice and make sure that buyers and sellers understand all aspects of the real estate process. Additionally, having a strategy that focuses on a specific area of town or neighborhood in addition to a list of must-haves ensures that home buyers find a home that matches their wishlist.

The blog article, Questions to Ask Before Making an Offer on a House, has tips to help avoid home buyer remorse or feel pressured to make an offer a house that may not be perfect for you.

Experience a Positive Home Buying or Home Selling Experience with the Sam Wilson Team

Some realtors pressure home buyers or home sellers to make a decision based on emotion versus facts. When this happens, the buyer or seller likely hired the wrong realtor based on factors, like a cut-rate commission, that affect the level of expertise and individualized attention provided.

When buying or selling in a competitive market, creating a strategy to act outside of traditional hot market times—like the spring selling season—can be advantageous. Time flexibility opens the doors to make the right investment and gain the most profit. Buyers who enter the market in January, February, or the fall season may experience less competition for homes.

Flexibility has its benefits. Homeowners who are willing to sell during the ongoing pandemic and high seasons have an opportunity to increase the profit from a home sale due to buyer demand. Sellers looking to trade up to a larger “work from home” home can buy a larger home due to lower interest rates.

National Real Estate Market Insights

According to the DMAR 2021 Year-End Review housing news nationally continues to be optimistic:

  • In November, new housing permits hit 137,000 on a seasonally adjusted basis, 9% higher than 2019. This is the highest rate of permit issuance since September 2006
  • Multi-generational home sales are increasing due to adult children and aging parents combining resources to support elder care
  • Millennials comprise the greatest number of first-time homebuyers and comprise about 30% of Denver’s population
  • Interest rates hit an all-time low on December 24, 2019, to 2.66%. Mortgage applications and refinance applications are up 25% and 124%, respectively

Real Estate Investment Denver: The Next 5 Years

These highlights are from the PWC Emerging Trends In Real Estate 2021 for the United States and Canada

  • Specific to the Denver area, single-family homes sales will continue to be driven by incoming residents to Colorado, aged 30-49—a population increase of 8.4 million
  • The population growth of retirees is expected to grow by 7.1 million
  • The under 44 age group will experience a 20% population boom

What’s driving the growth? It’s simple. The Denver metro area and Colorado are a great place to live with plenty of attractive diversions. Downtown remains easily accessible from the suburbs, which also have inviting downtown areas. The employment outlook is positive.

Individuals retiring in the Lakewood Colorado and Denver area may be more interested in downsizing for the convenience of lower home maintenance or yard work. Or as mentioned above aging retirees may be looking to invest with younger children in multi-generational homes.

The message for homeowners in the Denver metro area is that home prices will continue to appreciate. Buyer demand will remain high. Sellers interested in increased profits and trading up can take advantage of the current low-interest rates. A buy and hold strategy will be advantageous for the future as the Denver population will continue to grow.

Is Real Estate a Good Investment in Denver?

denver metro areaHomebuyers and home sellers can’t go wrong in the Denver real estate market. Opportunities exist for sellers to gain profits and buyers to invest in homes that will be easy to sell in the future.

According to the 2021 DMAR Year-End Review, over the last 31 years, home prices continued to see growth, equating home ownership to a driver of personal wealth. Projections are that the pandemic will not harm the real estate market.

According to Lawrence Yun, Chief Economist and Senior Vice President of Research at the National Association of Realtors, the Denver area sees faster employment growth than other regions of the country. Eighty percent of the jobs lost during the pandemic have been recovered. The pandemic will continue to give the housing market a boost as more workers can work from home.

Home Selling Strategies

If you are a homeowner considering selling, contacting the Sam Wilson Home Selling Team several months in advance of desiring to list your home is a good strategy, especially if you are unsure about necessary home repairs or have inspection questions. If you are in a position to list your home for sale, the team can have your home on the market in a matter of days.

If you’re thinking about selling your home, check out our list of FREE home seller reports 

​Thinking about Buying or Selling a Home?

Are you thinking about buying a home in Lakewood Colorado, or the Denver Metro Area?  Get expert real estate advice when house hunting for homes for sale in Lakewood CO, Jefferson County, and the Denver metro area. Work with a buyer’s agent on the Sam Wilson Home Selling Team. If you are thinking of buying or selling a home, we make you a priority and share our expertise to make the home buying or selling process as stress-free as possible.

Subscribe to our newsletter—it’s FREE. You will receive real estate tips, trends, and the latest real estate blog posts.

The Sam Wilson Home Selling Team specializes in homes in Lakewood CO, and Jefferson County Colorado, including Arvada, Aspen Park, Conifer, Edgewater, Evergreen, Genesee, Golden, Idledale, Indian Hills, Ken Caryl, Kittredge, Lakeside, Lakewood, Littleton, Morrison, Mountain View, West Pleasant View, and Wheat Ridge.

Contact Sam Wilson today.

© 2021 Sam Wilson All Rights Reserved. Articles by Pamela D Wilson

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