DENVER — Experts studying trends in Denver’s housing market said more landlords are opting to sell rental homes instead of continuing to rent them out as the housing market normalizes.
Nicole Rueth is a lender with the Rueth Team of Fairway Mortgage Corporation. She tracks trends in Denver’s housing market. She says right now, the market is starting to normalize — homes will continue to appreciate in value, but not at the rapid rate we’ve seen recently.
As a result, some landlords are opting to sell their rental homes and either cash in, or re-invest the money into another property that offers more cash flow like a duplex or a small apartment building.
As landlords sell single-family homes, Rueth said it’s great news for buyers because it means inventory on the housing market will go up.
“It opens up opportunities for homebuyers and that’s an area we so desperately need inventory in, in that below $500,000 price point,” said Rueth.
On the flip side, people interested in renting homes could see a smaller selection and rent prices go up.
“We continue to see rents go up in the Denver market, where that ends, I don’t know,” said Rueth. “If you want to rent a single family and the inventory is reducing, it might impact your ability to do so.”