Is Denver’s Bubbling Luxury Real Estate Market Safe to Invest in?
Technology and aerospace have brought in so many new jobs in the past few years with their incredible advancements. Both of these great industries can be found in the city of Denver, Colorado, and that has made it a huge hit for those who are looking for a new home close to these sectors. But what does this mean for Denver's luxury real estate market? To find the answer, keep reading to see if Denver's bubbling luxury real estate market is safe to invest in.
Why are People Moving to Denver?
Denver has seen an incredible increase in new residents over the last decade, and it is considered to be one of the largest growing metro cities. There was a 19% increase in population between 2010 and 2022, and the city is now the 5th most populated state capital. People have started to flock to the area for so many different reasons, which has led to a significant rise in real estate sales.
New business and employment opportunities are one of the main reasons people move to Denver, but there are plenty of other great things that have made this city popular. Denver has a great climate that is perfect for those who love to be outdoors, and there are so many different popular outdoor activities that people enjoy all year round. People also enjoy the beauty of the amazing nearby mountains and the incredible restaurant scene.
What is the Real Estate Market like in Denver?
The real estate market in Denver was all over the place in 2022, but the number showed us quite a bit about the current state. While the inventory has slowly been decreasing, the median home price has stayed the same, and it has only dropped recently. This means that the luxury home market has continued to thrive, and there are more than enough homes on the market to keep up with the high demand.
According to the experts at the Denver Metro Association for Realtors, the luxury market has actually seen an incredible increase in the number of listings and the number of sold homes. There are so many amazing luxury homes in Denver that are attracting buyers from all over the country. Single-family detached homes have been selling faster than they can be built, which has resulted in many of these homes becoming overpriced in a competitive market. This can make the median home price seem a little skewed, as many of the homes sell far below the asking price.
What does this mean for Real Estate Investors?
The rise in jobs has meant that the median income has also risen for Denver. From 2011 to 2020, the median income for a family has increased by about $25,000, and many households are earning about $70k per year. That means that luxury homes will continue to keep selling as more people continue to earn more.
If you are thinking about investing in luxury homes, now is one of the best times to do it. The market is predicted to slow down soon, which means home prices might end up increasing. Any real estate market can be challenging to predict, but the trends are showing that the slowdown might occur any time now, so you want to consider purchasing some of these incredible luxury homes before they become overpriced like the single-family homes are.
Should I wait to Invest in a Luxury Home?
There are over 100 luxury homes currently listed on Kenna Real Estate for the Denver area, and many of these homes have been on the market for a very long time. With the population steadily rising, investing in some of these properties could earn you quite a bit back in the future when the inventory starts to decrease. Local construction will likely turn to more affordable homes for the next few years, which means there will be fewer new luxury builds to choose from.
Investing in real estate can be a coin toss sometimes, so it's good to make investments when you know that things are only going to increase in price in the future. It's a good idea to invest at the right time to ensure that you will end up making a good return in the future. Waiting could mean that you lose out on some great quality homes that are selling at much lower prices than they will be in the future.
To answer the question, “Is Denver's Luxury market safe to invest in?” The answer is a resounding yes. These homes are incredible, and they are likely going to attract many of the high-income movers and shakers that are going to move to Denver in the next few years. Investing in Denver luxury homes is a fantastic idea for any investor, and it's a sure way to make sure you get some great properties in your investment portfolio.