Written by President and CEO of Kentwood Real Estate, Gretchen Rosenberg
Lawrence Yun, Chief Economist for the National Association of Realtors (NAR) recently said, the period we’re in “is not a bubble. It is simply a lack of supply.”
- In a recent article about the intense demand we’ve seen play out since late 2020, Lawrence Yun discussed the state of today’s housing market.
- Yun addressed whether today’s high buyer competition and rising home prices are evidence of a housing bubble and said that this “is not a bubble. It is simply lack of supply.”
- Today’s housing market remains competitive, with rising prices driven by buyer demand.
Kentwood Real Estate Agents Have Their Say
I queried several of our Metro Denver and Northern Colorado agents and they weighed in on the bubble theory.
“I’ve been in real estate sales in Colorado for several decades. There have only been three years out of the past 30 when we saw housing actually depreciate. Two of the Great Recession years and one year in the 1970’s.”
“I’ve been explaining today’s housing dynamics to my clients. They understand that there aren’t enough homes for the number of buyers in the market and absent a huge influx of inventory (unlikely) or a large rise in interest rates (not anticipated in the near-term) we will remain in a seller’s market for quite a while.”
“When supply and demand begin to get more in-balance, price appreciation will slow to single digits from double digits. I don’t anticipate it slowing to the point where we see loss of home values unless there’s a crazy unplanned incident. A “Black Swan.” Covid was that Black Swan in 2020 and even that only caused a two to three month pause in the housing market.”
Navigating the Colorado Real Estate Waters
For more information on Colorado housing, connect with a Kentwood Real Estate broker to talk about the best ways to navigate such an energetic market. Our residential and commercial brokers sell and lease properties across the Northern Front Range of Colorado from south of Castle Rock to Denver and up to the Fort Collins area.