Is Denver in a Housing Bubble?
There is much discussion in the Denver real estate community about whether or not we are in a housing bubble not unlike the housing bubble of 2008 that is credited with causing the recession. In true real estate bubbles, or housing bubbles, home prices and values peak followed by a steady decline.
Realtor Kevin Wachter of Wachter's YOUR TEAM at Keller Williams Advantage Realty gives us his expert opinion on the matter:
"As a professional in the Real Estate industry I have been watching the market closely. Everyone keeps talking about this thing called the "Bubble" and whether or not the Denver metro area is about to burst. Let me show you some numbers to give you a better idea of what this "Bubble" thing is and if we are or are not in a "Bubble".
For a Bubble to occur there would need to be a large excess of houses listed on the MLS. Currently there are just over 4,000 homes listed. In order to reach a "balanced market" we would need over 36,000 homes listed...that's a 32,000 unit difference. And that is just for a balanced market. To get anywhere close to a bubble Denver would need MORE than 32,000 homes to be listed, A LOT MORE.
Interest rates are still at an all time low and are expected to stay there for another year. It's a good time to buy and buyers are eager to move which makes it an even better time to sell."
What do you think? Are we in a housing bubble? I would love to hear your thoughts. Email me at email@example.com.