DMAR Market Trend 0320 - Housing Gain, Recession Fears
Denver Housing to Gain Despite Coronavirus, Recession Fears
Low Inventory, Again Out of the 5,122 new listings that came on the market in February, 5,083 homes were under contract in DMAR’s 11 county area, highlighting the metro area’s low inventory market dynamics. The low inventory trend seems to continue as we ended February with just 4,835 active listings, down 2.15% from January. Just what do you think is going to happen to home prices in a metro area of about 2.8 million people? Where is the Inventory? My hunch is 2020 might bring the biggest housing inventory shortage in US history.
Currently, 55.2% of all owner-occupied homes are owned by people age 50 or older. An increasing number of Baby Boomers are aging in place, unlike their parents who sold their homes to downsize or move ahead of retirement. It’s not just Baby Boomers. Homeownership tenures have reached new highs at an average of 13 years - the highest average in 18 years! Nationally, new construction just hit a 12 year high but only caters to the upper tier of housing, which leaves an estimated gap of 3.8M homes needed to meet market demand across the United States.
