Denver's hot real estate: One couple's frantic story

ERIE - If you or someone you know has bought or sold a home anywhere in the metro area, you've heard how hot the real estate market is here.

The Colorado Association of Realtors reports inventory is way down – and it is the biggest problem in our area.

A balanced market - one where there are enough sellers to accommodate buyers - is usually defined as a five to six month supply of homes. In Denver, at the end of March, there was a two month supply of single-family homes.

Rick Jacquemard and Kelly Burton decided to sell their home in January. They were looking to move out of the more expensive Boulder area and into a community nearby. They wanted a bigger home, a larger yard and a lower mortgage. The entire process, from listing their home in Boulder to buying a new home in Erie and closing on it took about 60 days.

"I thought it went too quickly; I wasn't prepared. All of a sudden, we realized we just sold our home and we've got to move, we've got to find another house really quick," Burton said.

They had 34 showings of their Boulder home in five days. After an "all-cash" offer and other offers, they sold the home in a week. They hadn't even looked at other houses yet.

This is how the realty process is playing out all over the metro area in different price points: list your house, get multiple bids, pick a buyer and hopefully you've found yourself a home. If not, there's no time to waste in making that next move.

"It was still a little nerve-racking with other people looking at them at the same time," said Jacquemard. "Same people at every house we went to."

The couple found their three bedroom, three bath home with a big yard. They were one of a few bids on the home they bought, but they ultimately raised their offer to get the home.

Demand is high. Inventory is low. Real estate agents say at least two big things factor into the scenario.

"You have this population growth combined with fewer housing starts; the construction industry is slow and lagging after the crash in 2008," said Timmy Duggan of Re/Max Boulder. "A lot of contractors left the business."

Real estate agents say it will be a while before the market cools off.

For now, sellers need to be ready for their homes to move on the market quickly and buyers better be ready to close the deal.

Real estate agents say as a buyer you need to go in pre-approved for a mortgage, because you may be bidding on a home the same day you see it. Plus, you need to have the money necessary to counter other offers. Also, communication is key with your realtor. The realtor needs to know what you want so when a house comes on the market you can jump right on it.

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