Is the Denver metro market in a bubble?
Thankfully, no we’re not. If you’re a homebuyer and you’re anxious about buying a home, try thinking of the Denver market as a teenager—we’re in a growth spurt right now, and we might level off and find our true footing in the next five to 10 years.
There are two factors that have a significant impact on the home buying process that we want to address: interest rates and the local economy.
First, interest rates. Right now, the median sale price of a home is about $450,000. We understand how that price tag can be a little intimidating, but look at it this way—if you were to purchase a $400,000 home with a standard 30-year fixed mortgage loan and a 1% increase in interest rates occurred, it could affect the life of your loan by $50,000.
Secondly, Denver has one of the most diverse economies in the country, with a number of leading industries, including aviation, aerospace, bioscience, healthcare, energy, finance, IT and software, etc. In the last year alone, the IT and software industry grew by 10%.
On a final note, Denver is ranked No. 2 on the list of the most highly educated workforces in the nation.
Taking all these information into consideration, we don’t see our market falling behind in any facet.
If you have any more questions about our Denver market or you’re thinking of buying or selling a home, don’t hesitate to reach out to us. We’d love to help you.