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More homes for sale in Denver, but don't get excited just yet

New construction bringing in potential buyers
Don't get too excited over Denver housing market
Posted at 9:08 PM, Jul 06, 2016
and last updated 2016-07-07 00:47:43-04

Shopping for a home in Metro Denver has been a struggle as inventory is low while prices continue to go up; for some perspective buyers, achieving the American Dream is a challenge.

"I'd love to live in a city like Denver, it's amazing. There's nothing I don't like about it, but with the housing the way it is, it's just not an option," said Megan McArthur, a Texas resident with family in Denver.

Now, according to experts at Zillow.com, there are some early signs of a correction, thanks in part to the completion of new construction.

Over the last few months, about 500 more homes have been put up for sale in our area.

In February, Denver experienced a big low, with just 5,656 homes on the market. In May, the area saw a big surge with more than 6,220 houses up for sale.

"This increase in inventory... it's a step in the right direction, but by no means is it a game changer," said Zillow economist Dr. Krishna Rao.            

"While this extra inventory is definitely going to help a little bit, it's still going to stay a strong seller’s market and buyers are going to unfortunately probably continue to be frustrated when they look for homes," said Rao in an interview with Denver7.

Long-term, housing prices in Denver will likely still rise, but it may be more manageable.

"While we still expect prices to be higher next year than they are today, it's not going to be quite the same rate of change buyers have seen and that's definitely welcome news," he said.

First-time home buyers may face a challenge, as the new construction coming onto the market is typically high-end, luxury property.

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