Case Shiller’s home price index increases yet again, showing a 7.16% year-over-year gain. Denver Metro Association of Realtors show a 9% increase in the median and a 11.9% increase in the average. Good news right??
Maybe not. If you want to see your home value go up, its surely a good thing. If you want a healthy local economy with sustainable growth that attracts business and investment, it might not be so good.
Belying the price increase is a decrease in active listings (down 6.2% according to DMAR), new listings (down 3.1% ) and sold listings (down 8.1%):
With rising home prices and shrinking inventory, many business may find the housing challenges of maintaining and expanding their Denver-area workforce too challenging, leading to a reduction in economic growth.
The continuing robust supply of multi-family inventory in Denver surely helps house those at the entry points of Denver’s new economy, but newcomers looking to set down roots and grow their families locally, will find it more and more challenging in years to come.