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DENVER — Despite the overwhelming amount of construction popping up on every empty land in Denver, it’s still not enough to level out rising home prices.
The average price for a single-family home in Denver is just a little over $500,000.
According to a recent report by CoreLogic, a real estate and analytics company, Denver homes are overvalued. That means the median income in Denver is not keeping up with the increasing home prices.
The report shows Denver home prices from April of last year until April of this year has gone up by nearly 9 percent, exceeding the median income by 10 percent.
“We just don’t have enough supply,” said Kentwood Realtor, Stacy Neir.
In 2010, there were 30,000 homes on the market making it a buyer’s market. But eight years later, the number is down to 6,000, and about 5,000 of those are selling every month, flipping the table on buyers.
“We are up against multiple offers situation, where we are offering $30,$40,$50,000 over asking price. We are waiving appraisals. We are taking properties as is and sometimes we are writing 4,6 7 offers before an offer actually exits,” said Neir.
Construction can’t keep up with the rapid population growth in Denver.
“I think that interest rates are going to continue to go up and that will hopefully stabilize the market and bring it back a little bit to a normal market where there is enough supply to meet the demand but I don’t foresee that happening anytime soon,” said Neir.