3 ways to profit from the Colorado real estate boom
Trends and tips to strategically navigate the market
A May 2017 statewide report from the Colorado Association of Realtors tracked a 5.1 percent year-over-year increase in sold listings through the first five months of 2017. Average selling prices rose 11.4 percent and the median selling prices rose 9.6 percent during the same period, the agency reported. In all three areas, the Colorado real estate market is growing faster this year than it was during 2016.
How do you profit from this as a homeowner?
Below are three trends we’ve spotted in the hundreds of calls we get from buyers and sellers every day.
3 Paths to Profit
Hot markets offer sizzling opportunities to those willing to act. All three of these ideas can help you make money right now:
- Try renting. In and around the Denver area, rental space has come at a premium with the average now equaling or exceeding the cost of a mortgage in many cases. For example, in our headquarters city of Aurora, the average rent for a two-bedroom apartment is over $1,575. And that’s up 4.4 percent over the past six months, according to data compiled by RentJungle. Maybe it's time to think about clearing out the unused office or finishing the basement? The returns on your excess space could be worth more than you think, but be sure you comply with all local laws. (Your extra space may need to have a separate entrance, for example.)
- Move adjacently. Whether you're still single, newly married, or an empty nester, moving from a hot area such as RiNo to a more temperate market like Colorado Springs, where there's more inventory and sellers are more willing to deal, could put serious money in your pocket as a homeowner.
- Spruce up the house to generate equity. Who says you have to move? Fixing windows, finishing a basement, updating the landscaping and any number of related projects could substantially improve the value of your home. This helps create equity you can tap as cash for debt consolidation, funding a child's education, and more. Think creatively and long-term to get the most from your projects. For example, making energy efficient upgrades can cut costs in the short term while boosting the overall resale value of your home.
For much of the past decade it’s been good to be a Colorado homeowner, or home buyer. Times haven’t changed much in that regard. Rents are up, property values are soaring in some areas yet moderating in others, which makes it a vibrant market rich with opportunity. Take advantage by renting extra space if you own a home and shopping around for good deals in emerging areas if you don’t -- or if you want to trade up. Also, invest in your home: a few quick repairs can make you thousands in equity, which will come in handy when it’s finally time to sell.
For a growing number of us, that time is right now.