MORE HOMES MEANS LOWER COST
For many Colorado natives, the housing market boom in Denver has been more of a nuisance than a benefit. Millennials cannot find affordable places to live, whether it be a first-time buyer home or an apartment; the houses are astronomically priced. The only people who have reaped the benefits of home appreciation prices are 40 to 60 year olds who’ve paid off their home or are close to paying their home off. However, research shows that the market is finally beginning to slow, giving the younger generation hope that they won’t have to live in their parents’ basements upon graduation.
This past July, research came out that the recent boost in supply of homes will bring the price of homes down, due to simple laws of supply and demand in economics. Many have been stuck in a seller’s market which makes it difficult to have options for really settling on a dream home. Houses are being sold within a day of being put on the market, but Erin Douglas
from The Denver Post says that quick turnover is coming to an end.
“Residential inventory in the Denver metro area increased nearly 20 percent in June compared with May,” Douglas said. With the added homes on the market, it is the market hope that natural forces will bring the market back to equilibrium. “The reality is that having double-digit growth is unsustainable,” Steve Danyliw of Denver Metro Association of Realtors said.
It is the common belief in economics that what goes up must come down. A lot of Colorado natives felt that maybe this wasn’t true. They felt that maybe the market would never come back down that it would always be expensive, becoming the next Chicago or Seattle.
A current senior at CU Denver, Harshitha Adapa, feels it is a relief for
the market to be turning. “As someone who is going to be graduating in almost a year I really have to start thinking about the future,” Adapa said. “I need to start really planning for my financial future and it’s such a relief that the market is turning around,” Adapa said.
“HOMEBUYERS CAN BEGIN TO BREATH AGAIN”
“I grew up in Denver and it’s hard as a native that the house and neighborhood I grew up in has recently appreciated so much that I can never afford it truly, at least not for a long time. A lot of these homes aren’t necessarily worth what they are selling for, and so I think it’ll allow for millennials to get on their feet again to know that owning a home in their hometown is possible.”
Hopefully, the research on the market coming back down is accurate and will allow for new families to provide their kids with a similar upbringing that they experienced pre-migration boom that took place in 2015. Only time will tell, but the numerous reports on the market leveling out prove that potential homebuyers can begin to breathe again and plan for their financial future with more ease