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Homes for Sale in Colorado are Selling Quickly

Compared with many states, Colorado endured the bursting of the housing bubble fairly well. From the first quarter of 2007 through the first quarter of 2012, home prices only dropped by 9.5 percent, which was well below the national average. While the state was affected by the housing crisis, it's safe to say that it's made a phenomenal rebound. These days, homes for sale in Colorado are increasing steadily in price, and they're flying off the market. Those who are looking to buy must act quickly, and those who are looking to sell shouldn't have to wait long.

It's a Seller's Market in the Centennial State

There's no doubt about it: Sellers are the big winners in today's Colorado real estate market. Several factors contribute to this phenomenon. First, over the last several years, many homeowners have taken advantage of rock-bottom interest rates by refinancing their homes. Many are understandably unwilling to budge, so fewer homes are probably being listed than would otherwise be the case. This contributes to the low real-estate supply across the state. Second, the average listing price has steadily inched upward, which has forced many would-be buyers to hold off for now. The few homes that are up for grabs often spur fierce bidding wars, and it's not unusual for multiple offers to flood in within days of a home being listed.

Bidding Wars for Colorado Homes for Sale

According to the Federal Reserve Bank, Colorado's Front Range and several other areas around the state are experiencing low housing inventories and ever-increasing prices. These days, multiple offers are the norm, and sellers aren't having any trouble finding buyers who are willing to meet their asking prices. In fact, many homes for sale in Colorado are being bid up above the listing price, which is creating an entirely new kind of problem: Home appraisals are increasingly coming in below the agreed-upon purchase price, which is forcing buyers to either make up the difference, pay entirely in cash or walk away.

Foreclosures Down in Colorado Real Estate Market

Colorado's real estate market is booming, and one of the clearest pieces of evidence to support this is its drop in foreclosure filings and completed foreclosures. According to the Colorado Division of Housing, new foreclosure filings were down significantly from the first quarter of 2013 to the first quarter of 2014. Completed foreclosures dropped by an incredible 41.5 percent across the same period of time. As foreclosures drop from the market, buyers' options become all the more limited. Prices increase even more, and bidding wars and other related phenomena rise steadily as well.

Low Rates Sweeten the Deal

While mortgage interest rates aren't as low as they were even a few months ago and are significantly higher than the near-record lows that were experienced a few years ago, they are still very affordable. This is certainly true in Colorado, and it's spurring people to try to secure the homes of their dreams while rates are still competitive. When combined with the diminishing availability of homes for sale in Colorado, this is creating a huge influx of buyers vying for a small number of homes. To say that the Colorado real estate market is booming would be something of an understatement.

Is the Home Inventory Problem Abating?

Sellers in Colorado have nothing to worry about and can expect their homes to sell quickly and for at or above the original listing price. Buyers can take heart too, though. In Denver, for instance, home inventory levels rose 15 percent from April 2014 to May 2014. They rose 39 percent from May 2013 to May 2014, so this is an ongoing trend. If it continues, buyers and sellers alike will be able to get what they want.

Colorado's Real Estate Outlook is Incredible

In 2013, Colorado enjoyed its highest job-growth rate since 2000, with a growth of 3 percent. This is largely due to an explosion in hiring in the gas and oil industry as well as the construction industry. This rate is significantly higher than the national average of 1.7 percent. The unemployment rate has remained low too, so more people will be drawn to the Centennial State now and well into the future. This all bodes extremely well for the Colorado real estate market and anyone who is looking to sell a home in the state. Buyers can expect to enjoy higher inventory levels in the months to come too