New homes in Denver may be the solution to a tight housing market.
Denver is a great place to live. With beautiful weather and plenty of activities to keep anyone entertained year-round, the city is growing quickly. Denver now ranks #14 on U.S. News & World Report’s Best Places to Live in the U.S. in 2021-2022. There are many reasons for this, not the least of which is a strong job market that attracts young professionals and fledgling families to the area.
This year’s housing market has been a seller’s market all the way. Homebuyers have had to go to great lengths to find a home that fits their needs and then actually complete the purchase. Buyers are paying cash, forgoing inspections, and bidding considerably over the listing price for a chance at owning the house of their dreams. This environment has driven some buyers into new home developments who wouldn’t have otherwise considered them.
New home developments — such as those created by Oakwood Homes — are typically viewed as a mid-career choice rather than an option for those just getting started. Brand-new neighborhoods often feature custom-built homes, with buyers involved in the build process from the ground up. However, this home-building process feels out of reach for some buyers. The good news is that many new home communities also have quick-move-in homes. Colorado buyers are giving these neighborhoods more consideration given the existing real estate market.
Looking Ahead to 2022
The rise in Denver’s popularity is primarily responsible for driving housing costs up. As more people move into the area and settle in, housing prices increase, creating a challenge for homebuyers looking for affordable new homes in the Denver area.
According to Goldman Sachs, the price of an average home in the U.S. is likely to go up next year by as much as 16%. Over the past five years, the Denver market has outpaced the rest of the country, with home prices consistently rising further and faster than the national average. If this trend continues into 2022, the average price of a home in Denver could go up by more than 16%. If this happens, it will be the biggest increase the region has seen in housing prices yet this millennium.
There appears to be no way around it. Homebuyers will probably be shelling out well over half a million dollars for an average-sized home in the Denver area next year.
New Builds in Colorado May Help
New builds in Colorado may help alleviate some of the pain around buying a new home as builders continue to develop new neighborhoods. That assumes, of course, that builders have timely access to the supplies they need. The COVID-19 pandemic has wreaked havoc with supply chains across the country, leaving many construction teams sitting idle as they await the materials necessary to complete a project. Even when materials are available, they’re often more expensive than anticipated — another marker of the pandemic. Builders are struggling to keep projects on track, but the reality is that they’re having a hard time building homes fast enough to keep up with the demand for housing in the Denver market.
There is some good news for buyers, though. New home developments in the Denver area typically carry an inventory of ready-to-move-in homes that have the features most requested by today’s consumers. These homes are built with the same quality and attention to detail as the custom-built homes that typically comprise these neighborhoods. They have the latest in technology, design, and layout and are often in walkable neighborhoods, complete with green space, playgrounds, and outdoor gathering areas.
Thus far, competition hasn’t been as stiff for new homes in these communities, but that may change soon. As the existing housing market begins to stabilize — Denver experienced a 50.5% increase in active listings as of June 2021 — the median price for an average single-family home still hovers at over $600,000. It appears that quick move-in homes in Colorado may wind up being a viable option for some buyers.
New Homes in Denver Offer Benefits Over Existing Housing
New home developments, such as those built by Oakwood Homes, have several significant benefits over existing homes. The most obvious is that the house is move-in ready. Buyers don’t have to wait for sellers to coordinate the sale of an existing home before they can close the deal. This is a big plus for someone with a tight move-in timeline.
Another notable benefit is that everything about the house is new, including items that often have to be replaced shortly after moving in. Maintenance and upkeep are kept to a minimum, and there’s no need for immediate changes to be made to make the house more comfortable or more suited to buyers’ needs.
Also, many ready-to-move-in homes can be customized to some extent by buyers once they begin the purchase process. While the home itself is ready to go, buyers are able to personalize interior fixtures and features to their tastes and preferences. New home builders frequently keep design personnel on staff who can help homeowners envision the home of their dreams. They also complete the final feature selection process to bring that dream to life.
Finally, in today’s real estate market, buyers often must forgo or seriously limit their walk-through time when considering the purchase of an existing home. Another benefit of ready-to-move-in homes is that buyers can tour them ahead of time, walking through at their leisure and truly envisioning themselves living there. For many people, this is the biggest selling point.
New Homes in Denver are Just a Click Away
If you’re planning to look at new homes in the Denver area anytime soon, keep in mind that the housing market may be even tougher in 2022 than it is this year. Do a Google search on “new homes near me” and see what comes up. Then contact Oakwood Homes for more information on our inventory of quick-move-in homes in Colorado. We’ll be happy to give you a tour and help you find the perfect new home community for your family!