It has been reported over the past couple of years that the housing market in the United States has been achieving a higher rate of performance and that this rate will continue to improve over the next couple of years. This report is based on statistics provided by the U.S Treasury which also indicated that efforts were being made by mortgage servicers to assist the market and put it back on a path of growth. This effort was being especially pushed because of fears that arose in the market due to the influx of foreclosures and short sales that were being experienced.
Denver Property Management companies can attest to the fact that there has been a notable improvement in the state of the housing market since there was an unexpected increase in sales close to the end of last year. It should be noted however that this improvement in the market could be short-lived as there has been a decrease in the number of house listings posted for the region. This indicates that supply might not be able to meet the expected surge in demand for the current and upcoming seasons. Though it was highly publicized that the market was improving, it should be noted that Denver increased by only 16% over the past two years, with a projected increase of 5% this year. Of this 16% increase however, as much as 10% will end up going to brokers and covering closing costs. That leaves a true increase of only 6%.
As a result of this claim of an increase, homeowners were led to believe that they could finally sell their homes. After trying to do just that however, it was realized that the prices were just too high for buyers and so the market didn’t move. The end result is that there is a shift from the buying market to the rental market as individuals seek to satisfy their housing needs through more affordable means.