Rising Home Prices | Douglas County CO

There are many incorrect theories as to why home values continue to rise. Some are worried lending standards are again becoming too lenient (data shows this is untrue).  Some are concerned prices are again approaching boom peaks because of “irrational exuberance”.  This is also incorrect as prices are not at peak levels when they are adjusted for inflation.  Unfortunately, there seems to be no shortage of opinion.

The increase in home prices is simply explained by the theory of supply & demand. Whenever there is a limited supply of an item that is in high demand, prices increase.

In real estate, it takes a 6 month supply of existing salable inventory to maintain pricing stability. In most housing markets, anything less than 6 months will cause home values to appreciate and anything more than 7 months will cause prices to depreciate.

inventory-and-home-pricesAccording to the Existing Home Sales Report from the National Association of Realtors (NAR), the monthly inventory of homes has been below six months for the last 4 years.


Real Estate Bottom Line

If buyer demand outpaces the current supply of existing homes for sale, prices will continue to appreciate. Nothing nefarious is taking place. It is simply the economic theory of supply & demand taking place.

Source: KCM Marcy Ruberto Blog

To protect your interests and ensure you make the best possible decisions, it’s important you have a knowledgeable agent on your side who is an expert in the local real estate market. As your real estate agent I promise:


I am happy to provide you with the most updated strategic information for your home purchase in Highlands Ranch, Colorado.

To reach me, please call 303-638-6536 or email marcy@premierdenverhouses.com

Click on the map to search for current listings in Highlands Ranch


Thinking of Selling Your Home? Let Marcy sell your home with her 10 Proven Strategies. Call or text 303-638-6536 for more information.

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