Investors Show Increased Interest in Denver Market
Investors are snapping up homes at an unprecedented pace, including in Denver, where nearly 17% of home sales went to investors, according to a report from Redfin. The brokerage defines an investor as any business entity that purchases residential homes, including through an LLC or trust. Real estate offers a way to hedge against inflation and represents an asset class they have more control over than stocks or bonds. “From my conversations with them recently, they believe that the value of the dollar is decreasing every day and (know) that interest rates are historically low,” said Andrew Abrams, DMAR’s Market Trends Committee chair. He said investors can borrow money at a low rate and purchase a home with a large down payment. If home prices decrease, they can profit when sales prices climb up again.