Word on the street is that rentals in Colorado are in short supply, and it’s a seller’s market if you’re buying. Bad news for a Colorado real estate investor, right? Not so fast. Now is a great time to be a Colorado real estate investor.
It’s said that real estate in Colorado is now a seller’s market. That means prices are up and sellers are dictating the game. However, recent reports released by the Commerce Department showed that the median price of a new home fell last month by nearly 5%.
So if supply is lower, as it is in a seller’s market, and homes are selling, why are median prices lower? It’s a good question that will eventually right itself, but what that means for you, the real estate investor, is that it’s still a good time to invest. If rentals in Colorado are in short supply and the median home prices are lower, then now is the time to buy some homes and rent them out.
Median prices could be lower because homebuilders have to lower prices and offer financing so home buyers can afford new construction. There are still a lot of the same problems that make rental properties scarce: homeowners under water, foreclosures happening, and people not selling. Believe it or not, that’s a good thing. Eventually those homeowners will walk away from their underwater homes and give them back to the lenders. Those lenders don’t want homes on their balance sheets. Buying them at a huge discount is possible, meaning you can invest and then provide badly needed rentals.
Keep in mind too, that those newly constructed homes are being sold to people selling. They may be selling in a seller’s market, but prices are still low, so you can get good bargains. What you will be able to get in rent a month will more than make up for the less than ideal price, seller’s market or no.
So don’t throw in the towel if you want to be a Colorado real estate investor. Now is still a good time to invest in real estate for rentals in Colorado!
Want to know about some great Colorado real estate investment properties available…give me a call today! Tena D 303-452-5853