So they did. After putting in two offers and being outbid, the couple finally landed a home on their third try. Without more supply, demand is nowhere close to being met and this will cause prices to continue to rise. New construction is expected to increase this year and will help slightly with the lack of supply but home builders cite labor shortage as a major problem.
December ended with only 2, actives homes for sale across all 11 counties included in the report , down For buyers of single-family detached homes, affordable housing continues to grow more out of reach. In recent statements by Jerome H. Denver's new construction is expected to increase in Continued population gains and "the development projects still in the pipeline and the existing new developments like McGregor Square, 16 Market Square and Block ," are encouraging signs of a recovering economy.
CBRE ranked Denver in the top 10 for development opportunities due to favorable demand drivers like the quality of life, in-migration, and job growth. Mountain towns like those in the Vail Valley , Crested Butte, and Telluride have seen major upticks in the number of home sales. According to Matt Wilson of Usaj Realty, "September [ in Vail] was a record-setting month for the highest total dollar volume of real estate ever, which was quickly surpassed in October. This is a permanent shift for Vail's housing market, and future homeowners will look to local area experts to navigate the area's highly competitive market.
This article was originally published on Jan. Posted by Jennifer Black. With a passion for digital marketing, graphic design, writing, and all things creative, Jennifer excels in the office as a crucial support staff member for our brokers and management Originally from Redwood City, California, Jennifer pioneered her way to Denver and began working for Usaj Realty in May of She loves every minute of life in Denver, which is directly enhanced by her time designing for Usaj Realty.
Away from work, Jennifer enjoys escaping to the great outdoors, going skiing, hiking, and exploring local breweries and restaurants.
Topics: Denver Real Estate Market. Sign Up Login. Return To All Blog Posts. It's been 10 years since the housing crisis, are we due for another one soon? What is the story behind the low inventory in Denver? What are the seasonal trends in the Denver housing market? What has caused the increase in Denver's home prices? Low Inventory Plus Incredible Buyer Demand It should come as no surprise that there is an extremely low supply of inventory.
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Our newsletters bring you a closer look at the stories that affect you and the music that inspires you. Listen Live. Need help? If the home prices continue to rise at this rate, many buyers would be priced out of the market. And the average interest rate on a year mortgage was around 2. Now, assume that builders and sellers had met buyer demand, keeping prices flat over the year. Not only Denver but the entire Colorado housing market is a hotspot to buy and sell real estate.
Due to the surge in demand for homes, average prices for properties have increased in most regions throughout the state. Colorado Springs is in the strongest seller's market that we have ever seen. Low inventory and ever-soaring prices continue to impact affordability. Homes in Colorado Springs, CO sold for 1. The sale-to-List Price Ratio was Denver has a track record of being one of the best long-term real estate investments in the U.
Let us look at the home price appreciation trends recorded by Zillow over the past few years. Denver's strong economy gives buyers the ability to spend more on housing, consequently increasing real estate prices. Home values rose so much over the past six or seven years that affordability became an issue for a person earning the median income in this area.
This was up less than three percent from , but up almost 90 percent from ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. Home values have gone up Zillow Buyer-Seller Index BSI shows that Denver is currently the seller's real estate market which means that demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations.
There are fewer homes for sale than there are active buyers in the marketplace. Similar growth has been recorded by NeighborhoodScout. This amounts to an annual real estate appreciation of 7.
During the latest twelve months alone, the Denver appreciation rate has been at nearly 5. If it remains steady, the annualized rate of appreciation becomes 8. The forecast for is that the shortage of supply and an increase in the demand for housing from new homebuyers will push the prices higher in the next twelve months. If mortgage rates remain low, it will continue to bolster the home buying activity and pull the home prices up.
For sellers, now is the opportune time to put their Denver home up for sale. The pricing of homes is trending higher and is more attractive for sellers in the current phase. The chart below, created by Zillow, shows the growth of median home values since and their forecast until June In conclusion, we can say that these numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller?
Low mortgage rates can only help buyers if prices remain flat this year. Otherwise, their monthly payments will increase with increasing rates. In a balanced real estate market, it would take about six months for the supply to dwindle to zero. In terms of months of supply, Denver can become a buyer's real estate market if the supply increases to more than six months of inventory. Months Supply of Inventory in the metro Denver housing market has dropped to 0. Less inventory means home sellers have more power.
Therefore, in the long term, the Metro Denver real estate market remains strong and skewed to sellers, due to a persistent imbalance in supply and demand. Nationally, the houisng market is breaking all the records despite the COVID pandemic and the real estate sector has been one of the most resilient areas of the economy during the severe economic shutdown.
Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Many variables could potentially impact the value of a home in Denver in or or any other market such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets.
Most of these variables are difficult to predict in advance. Should you consider Denver real estate investment? Many real estate investors have asked themselves if buying a property in Denver is a good investment?
You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in Denver is ranked as the country's 16th-most walkable city, with , residents. It has some public transportation and is very bikeable. Downtown is the most walkable neighborhood in Denver with a Walk Score of As per Neigborhoodscout. Other types of housing that are prevalent in Denver include large apartment complexes, duplexes, rowhouses, and homes converted to apartments.
Denver ranked 13th for overall real estate investment and development, according to some 3, industry professionals surveyed and interviewed by the Urban Land Institute and PwC. Survey respondents viewed Denver's housing market even more favorably, collectively ranking it ninth overall. Of greater importance to real estate investors in Denver is that the area is growing in population.
The jobs are increasing and so are the number of renters. It is the largest and capital city of Colorado, home to roughly , people. The Denver metropolitan area is home to around 2. The population has increased by 1.
The Denver-Aurora, Colorado statistical area is home to about three and a half million people. It has a low unemployment rate of 2. Bureau of Labor Statistics. A third of the population of the Denver metro area rents. All these are excellent signs of investors looking to buy a rental property in Denver. Despite the recent cooling off, there are several reasons to consider a long-term investment in the Denver real estate market.
Denver is a key trade point for the country, and home to several large corporations in the central United States. While there are houses in the hills, it is a lot harder to build on the mountainous landscape than on flat plains.
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