Talk about the Denver real estate market, Whew! What a year! From Fortune Magazine, “By some experts’ definitions, “this year, [the housing market] decidedly shot way ahead of the economy, to the point where we saw this incredibly overheated market characterized by massive multiple offers, contingency waivers, price escalation clauses, and, in fact, record prices,” George Ratiu, senior economist at realtor.com, tells Fortune.”
Then in a September 28, 2021 article, “On Sept. 30 the expanded mortgage forbearance program will finally begin its wind down—something that will have far-reaching effects on the broader economy and the housing market. There’s never been a forbearance wind down like this, making the consequences all the more uncertain. At its height, the program protected 7.2 million homeowners. As the economy improved—with the unemployment rate falling from nearly 15% in April 2020 to 5.2% as of Aug. 2021—the number of borrowers in the program dropped, too. Now, there are just 1.5 million borrowers protected by the program. While some of these borrowers will be ready to resume their mortgage payments, others won’t. In fact, the real estate industry is already preparing for a supply shock: Hundreds of thousands of these currently protected homes could soon be put on the market.”
This flood of new inventory will most certainly change present market conditions. We are cautiously optimistic projecting how many homes will be in this wave of new inventory but the consensus in the industry is that the market can easily handle 25% of forbearance borrowers listing their homes. All we are sure of now from Westword that “Sky-high prices for Denver homes, which typically moderate when the weather turns cold, are holding steadier than anyone expected. According to the Colorado Association of Realtors, similar scenarios are playing out statewide for the simplest of reasons: Demand continues to outstrip supply.”
Direction For Denver Real Estate 2022
According to the latest monthly market data and analysis from the Colorado Association of REALTORS® “Most markets across the state, the pace of available inventory slowed in October and was quickly consumed by the insatiable demand that has come to define the Colorado housing market in 2021, according to the latest monthly market data and analysis.”
Goldman Sachs recently released a forecast of the nation’s housing market future. “There will be no market crash at the tail end of the record homebuying frenzy that accelerated through the pandemic. Instead, limited inventory will push home prices up 16% by the end of 2022. If that predicted trend happens in Colorado, the Denver metro’s single home price will reach $651,290 by December 2022.”
*The complete reports cited in this press release, as well as county reports are available online at: https://car-co.stats.showingtime.com/docs/mmi/x/MetroRegion?src=map
The clock is ticking and the months following 2022 will answer countless questions and reveal the outcome of predictions made this year. Your realtor specialists at Katchen Company can help guide you through the daunting processes involved in any type of transaction. They educate their clients, potential buyers, and sellers to see where the market stands the moment they are ready to make a move.
**“Kathy and Ed are consummate professional-hard working, knowledgeable, calming. From soup to nuts, they were fantastic, and we sold our property for 70K above asking! We could not be happier. Thanks” ~ Jenny Wood, seller review published.