Zillow, a real estate website that provides information for home buyers and sellers, estimates that inventory shortages will continue to impact Colorado home buyers. In a post, Zillow economist Svenja Gudell said inventory of homes for sale in most places in the country has created a “game of musical chairs” for home buyers. Gudell wrote that most home owners are scared to list their home for sale because they are worried that they won’t be able to find another home to purchase.
With a lack of housing available, home prices are expected to continue to rise. According to a report from Zillow, there are 12 percent less homes on the market compared to a little over a year ago.
“(House) prices are going up pretty sharply. Home buyers are going on the market, unemployment is pretty low, but when they’re going to buy, they’re not finding many options,” Zillow senior economist Aaron Terrazas said in an interview with La Voz.
A lack of options will not be ignored by home builders, Terrazas said. Home builders are predicted to key in more on entry-level homes in 2018 because the market for them is huge. Suburban homes are also expected to be popular amongst home buyers in 2018, particularly millennials.
“Millennials are coming of age and they’re starting to get into having families,” Terrazas said. “I think inventory (of houses) will still be a story.”
The tax reform bill is also expected to impact home buyers. People will have more disposable income in their pockets this year, but what they decide to do with that money remains to be seen.
“For the median buyer, they should see a tax cut. They ill have more money to spend. We’ll see whether or not they choose to spend that money on a home, or a car,” Terrazas said.
Andres Gonzalez, a new father and a Colorado native, wants to live in the state, but housing prices may move him and his family out. Gonzalez has lived in Colorado for over 30 years and said it would be heartbreaking to have to move to a different state, but he isn’t sure of what the future holds for him and his family.
“(Home) prices are high, and I have a family to support. I love my state, and I take pride in where I’m from, but times are tough. I don’t know what is going to happen, but I do know that finding reasonably priced housing in Colorado is difficult,” Gonzalez said.