The fourth quarter has proved to be competitive and several buyers are ready to move. Consumer seniment is at the highest level since December, 2000 and Denver has the one of the lowest unemployment rates in the nation at 1.7%.
Our market is still undersupplied and builders are not pulling enough permits to meet the demands of buyers. New home starts will be lower than expected due to the natural disasters and building issues like Weyerhaeuser Flack Jacket pulling resources from the Denver market.
Townhome starts will reach an all-time high as builders try to reach the first time home buyers and affordable housing. I don't expect many builders to have a home under $350,000.
Rental vacanies are rising and up to 5.4% now. The average rent is $1,412 with a 3% annual appreciation. If you are able to purchase a home, this is still a good time to do it!
