The average price of a single-family home in metro Denver passed $600,000 for the first time ever in August, the most recent month with available data, despite the ongoing coronavirus pandemic.
In Denver proper, the average home price rose to over $650,000 last month, a hike of more than 10 percent from August 2019 — but inventory fell over 50 percent. In large markets around the area, prices rose as much as 17 percent over the previous year, as Michael Roberts detailed in his story "Why You Can't Find a Home You Can Afford in Denver Right Now."
In their comments on Westword's Facebook post, readers had plenty of answers...and complaints. Says Jay M:
"Here's why," then story doesn't actually say why.
Responds Jay C.:
Let me enlighten you. The reason prices are so high is because of an inventory shortage. End of story.
Not end of story, because the inventory shortage has a cause: speculation.
No, it's inventory. The market isn't inflated because someone thinks something is worth that much. The market is a reflection of the desirability of the location.
Low inventory + high demand. (Supply and demand, economics 101.) Someone who cannot compete in the marketplace, migrate to a more affordable market. Alabama or Texas have very cheap homes. Unfortunately, you want the Colorado lifestyle and so does everyone else. You need to stay competitive and a minimum wage job is not competitive.
'Cause all those people selling their teeny tiny million-dollar homes in California and moving to Colorado. They have big cash to buy houses.
Here’s the reason why: Everyone is still moving to Colorado. Your native states sucks, we get it. Thanks for taking up all our space here, though.
But Diana comes back to the promise in the headline:
The article purports to explain why one cannot find an affordable home around Denver. Yet all it provides is various inventory data without explaining why the inventory changed. So, the inventory of houses for sale fell. Why did it fall? Have more people been moving to the Denver area and buying up inventory and causing the inventory to fall? Have people in apartments been buying houses? Were once listed houses de-listed because of pricing issues? Are people buying 2nd homes and renting out the 1st homes instead of selling? The article is very shoddy reporting.
What do you think of the current real estate market? Post a comment or email your thoughts to firstname.lastname@example.org.
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