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.