Why It’s So Hard to Buy a Home in Denver

Redfin recently release their first quarter report on home purchases by RE investors across the country and it showed that purchases by investors increased by 2.7% in the first quarter after dropped for the last 3 quarters of 2020. In metro Denver homes purchased by investors increased by 16.8% in the first quarter and that about 1 out of 7 buyers was a RE investor in metro Denver during the first quarter.

This is probably why home sellers are seeing so many cash offers on their homes. Why are RE investors buying more properties?
· With short-term interest rates at 0% and even muni bonds only yielding 1.50% to 2%, investors are looking for higher yields and real estate provides this.
· Second, I am sure many RE investors are leery of the stock market plummeting as values are out of line thanks to the Fed and Congress printing money.
· Third, the talk of limiting 1031 Exchanges is causing investors to act NOW.
· Fourth, higher home prices lock more people into being long-term renters increasing demand for rental properties.