Home market prices have been front page news for the last few years but with the pendulum swinging, the market could solidly favor buyers next year, says a recent article in The Denver Post.
If the question is how will Denver real estate market perform with a recession? Colorado Hard Money Lender has a really exciting take on the matter. “On a positive note, Denver should outperform most other markets throughout the country due to strong employment and desirable location. Furthermore, supply is still constrained which should soften the landing.”
The Denver Market
Homes are expected to continue to appreciate, though not at the rapid pace from 2021-2022. Prices may increase to the medium home value in Denver which has increased 19.1% over the last year. Zillow says, “The typical home value of homes in Denver is $640,554. This value is seasonally adjusted and only includes the middle price tier of homes. Denver home values have gone up 13.8% over the past year.”
The Denver housing market was at the forefront of the national recovery the last decade, and the Mile-High City appears poised to continue its high value climb due to a strong economy. Denver appeared to be slightly insulated from the pandemic from the beginning, and was one of the first to come out of the “shelter-in-place” orders with steady momentum.
Denver Real Estate Home Market Forecast 2022-2023
Following the recent trend of tight inventory and high demand, properties available for sale have increased, and while it still too early to read exactly, forecasts are becoming more reliable.
Demand is still outweighing supply with 3.7 weeks of amiable inventory and an imbalance of supply and demand could push home prices up 21.5% over the next year. This effect will cause rent increases as even more home buyers will become renters in 2022 and inventory is still low. This need will drive rental rates faster in the neighborhood of 16%
The Fed has already announced it is intending to increase interest rates to fight inflation during 2022 so the 3.45% rates has gradually risen and will possibly again. Higher rates will increase the cost of homeownership in the Denver housing market sooner rather than later. The announced threat of rising costs will also increase demand, another boost for home values.
CPR news announced Denver hem prices have declined these last 2 months as the mortgage interest rate rose. But sluggish sales have pushed up the number of active listings from last year providing supply hungry buyers a larger selection of properties.
As the market stabilizes and somewhat balances, the most recent buyer strategy is to try to predict what will happen next year. Since that is not a 100% reliable option, the timing might be right to jump into the hot housing market. Even with more available inventory, buyers are still facing steep prices and higher mortgage rates. Admittedly buyers have a tiny bit more breathing room even though it’s still a seller’s market.
Your Very First Step
The first step to facilitate a successful sale in Denver, is to find a listing agent who knows the area and comes highly recommended. You also want to look for an experienced broker, such as Kathy and Ed Boyle with Katchen Company, who are dedicated and extremely knowledgeable in the Denver housing market. They can guide you through buying and selling the home of your dreams, while working closely with clients to price a home competitively while fielding questions and offers from prospective buyers. So, despite high demand and lower inventory of available homes, residential real estate should remain strong in metro Denver.
Here is the Aug 29, 2022 Informative “Coffee Talks” featuring Ed & Kathy Boyle co-owners of Katchen Company Real Estate.