Denver housing supply down, demand is neutral
Denver homes are worth $22k more than last year. That’s on par with the percentage increase of home prices across the nation. Where we do stand out is that our inventory of homes for sale decreased by 23.3%, which is double the national average. What’s going on? My theory is that we are in a time of rapid inflation. Fortunately, real estate values adjust with inflation, but not much else does so naturally. Regardless, if you can get a house on the market, there is good money to be made.
How GDP and the real estate market are linked
Knowing the local market is key when it comes to real estate investing. However, here is an interesting article that links big city real estate to the overall growth of the U.S. economy. 75% of GDP is produced in just 50 cities, and Denver is one of them. This means that our real estate market is closely linked to the national economy’s growth or decline. For example, job growth leads to higher home prices in these cities. This means that the investment strategy in these cities is different than in smaller communities, where local knowledge is still king.
See you soon,
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