Reverse mortgage originations are taking over the Denver metropolitan area and it could hinder the market for first-time homebuyers, according to a recent report.
"Citing a recent LendingTree study that showed Denver had the second-highest reverse mortgage usage among borrowers aged 60 and over, the Denver Business Journal speculated that demand for Home Equity Conversion Mortgages could be contributing to the city’s low inventory of available properties for sale," according to Reverse Mortgage Daily.
Older buyers are seeing a lot more options when it comes to buying a new home and using a reverse mortgage model as a financing option.
"The most recent market report from the Denver Metro Association of Realtors revealed a record-low 3,869 homes for sale, according to the DBJ," according to RMD.
"That bottleneck has been blamed on increasing demand for housing in the Colorado capital, as well as a lack of new construction — and a dearth of affordable options for older folks who might be considering downsizing."
The options for younger, first-time homebuyers has dwindled and continues to do so in the Denver metro area. To learn more about these statistics, click on the image above.