Housing Bubble? Not so fast.
Our market has seen strong price increases over the last several years which leads many to believe we are headed for another housing collapse. While over inflated prices is one precursor to a looming market correction, it is not the case for Colorado currently. Black Knight Financial produces a Monthly Mortgage Monitor where they look at delinquencies and foreclosures for each of the 50 states.
As you can see from the chart below, Colorado has the lowest percentages of foreclosures and non-current mortgages of any other state. What this tells us is that while the price jumps have been driven by low supply and high demand, there is also a strong economy backing up these purchases. People are buying homes that they can afford and the prices aren’t over-inflated.
While rising prices can intimidate potential buyers, it should be reassuring that you likely won’t be overpaying in the current market.