Most neighborhoods are still popping despite COVID concerns and protests. However, there is one that has somewhat stalled out with inventory increasing and not a lot of demand. What neighborhood is that? It is the Downtown Denver real estate market. These changes in the market are a result of a few factors:
- Amenities are Closed. Living in Downtown Denver has a lot of perks, including, close proximity to just about all amenities – gyms, parks, museums, public transportation, restaurants, shopping, bars and so much more! However, due to COVID, all of these amenities are closed which means there is no advantage to live Downtown currently.
- Harder to get loans at higher prices. Over the past seven to ten years Downtown Denver has grown and gotten very desirable, i.e. EXPENSIVE. Lately, jumbo loans (loans larger than the conventional limit) have been very difficult to obtain and many financial institutions have limited or discontinued jumbo products through the uncertainty of this market and virus. This means interested buyers may have a more difficult time obtaining a mortgage for an expensive home Downtown.
- People are not working Downtown now. On any given day before COVID, there were thousands of people that worked Downtown Denver, making living Downton very desirable for many. However, now a majority of these employees are working from home and unsure when they will be back in the office.
- Boards up on Businesses. As the protests started, many businesses shutdown (again) and put boards up. With businesses and other amenities shutdown, many people don’t have a reason to go Downtown.
- Some are Concerned about Shared Spaces. Most of the real estate Downtown Denver is shared being either condos or townhouses. As we navigate COVID, some buyers are reluctant to buy shared spaces and would prefer a single-family home (with a yard).
The result is a significant amount of inventory Downtown with not as much demand. This means homes for sale are taking longer to sell and may have to reduce their price to entice buyers. If you always will be a city dweller and love to live in the in the center of everything, buying a home Downtown Denver now may be a great option!
Liz is broker and owner of Liz Daigle Realty.