5 reasons there aren’t enough homes to buy in Denver.

Although you may have read that housing inventory increased from February to March in the Denver Metro Area, it was a bit of an anomaly.

“(The) additional 995 new listings on the market at the end of (March) will slightly aid the balance of supply and demand,” said Andrew Abrams, chairman of the Market Trends Committee for Denver Metro Association of Realtors. Even with the big jump, the Denver Post reported that there were only 2,221 active single-family homes and condos for sale in metro Denver at the end of March — which is not nearly enough for the current demand.

In addition to the loss of more than 1,000 homes due to the Marshall Fire, our area also grapples with the same causes of housing shortages that other communities are facing:

1. Low interest rates increased homebuying activity.
2. Increased demand during the pandemic when more people used their homes as offices and classrooms.
3. Household savings increased due to stimulus checks and spending less by staying home, allowing some people to save up for a down payment.
4. Millennials are a prime home-buying age group, the largest generation since the boomers.
5. Fewer new homes were built during the Great Recession, while today’s supply chain issues of the pandemic and increased materials costs are affecting new home construction.

Although it may feel as if finding a home you want and can afford isn’t realistic right now, supply and demand will eventually level off — especially since interest rates are starting to slowly rise.

In the meantime, keep an eye on those Denver neighborhoods you’re most interested in so you spot opportunities that come along.

We encourage you to contact one of our loan officers, who can talk to you about getting pre-qualified for a mortgage.