Is There a Denver Bubble?
If you merely broach the topic of real estate in and around Denver nowadays, you’re likely to come across the words Denver ‘bubble.’ As we’ve moved out of the recession throughout the last 5 or so years, potential buyers are more concerned than ever about an inflating Denver bubble that is on the brink of being unable to take in any more air. By now you’ve likely read a a few articles from a local publication that gives their take, yet the fact is that if you ask ten different people whether or not Denver real estate is experiencing a bubble that may soon burst, you’ll get 10 different answers.
First, let’s take a look at some facts:
- June 2016 saw a 4.1% increase in active listings and a 2.8% increase properties put under contracts. Days on market saw a less than 1% swing in this same time period.
- Last month averaged 14 showings per listing.
- Inventory is hovering around 1.5 months, whereas a normal market has 6 months of inventory. [To clarify, for every 180 buyers (6 months), there are about 45 homes (1.5 months) for sale.]