Want to predict the Denver, Colorado housing market trends for 2022? If you had a crystal ball what predictions would surprise you?
Starting with a huge spike in demand in 2020, when Covid-19 enabled unprecedented remote workers home, today the market continues to evolve. This change, in what is now considered ‘normal,’ forced people to stay at home and really begin to enjoy their surroundings.
That’s when Coloradans started searching for larger homes to accommodate their new work-school-from-home lifestyle. The interest rate cooperated and caused a crisis as demand exceeded supply. This domino effect caused unbelievably low inventory with high demand that caused an upturn in prices in 2020 and 2021.
We explored this subject on the impact of remote work in our blog from September 17, 2021. “Price will continue to rise, there is simply no way of getting around the supply and demand conundrum of late,” wrote Matt Leprino, market trends spokesperson for the Colorado Association of Realtors. Not since October of 2020 has there been even one full month’s worth of inventory on the market and not ever before have we seen a winter with less than half that like we’ve seen in 2021.”
So…Where Does Denver, Colorado Go From Here?
Prices have continued to climb but rising interest rates could prove to be what puts the brakes on climbing prices. In an article from Denver Business Journal by reporter Jensen Werley, published December 28, 2021, “Interest rates will likely go up and with that, purchasing power will diminish,” Moye said. “In an already expensive market, that could push buyers away from Colorado and into more affordable areas. That may just be the beginning of balancing our market again but that will take a few years for the market to react to that adjustment. I expect we will see another strong market and the challenge for buyers here will remain. However, I think it will be tempered with the rising interest rates and lack of affordability in our area. I think we’ll see appreciation but not as much as we saw in 2021.”
As the market stands now, offers are well above the listing price, a trend that could be in place for at least the first half of the year. Even if interest rates go up and prices come down, now is the time to buy.
In our last blog we published the total market report overview from October2021 for the Denver Metro Region. Housing Report research tools provided by the Colorado Association of Realtors.
U.S. News from September 2021 published, “The U.S. housing market in 2021 has been a year full of low interest rates, eager buyers and low inventory of homes on the market. Denver is no exception, especially as it continues to attract young professionals, growing families and others to its location on the Front Range of the Rocky Mountains.”
“Ranking No. 14 among the Best Places to Live in the U.S. in 2021-2022, Denver sees high scores for its desirability among U.S. residents and strong job market in particular. But such attractions that draw people to the Mile High City and its surrounding suburbs come at a cost: The more popular Denver gets, the more expensive the housing. And it’s only getting more popular.”
To help you navigate through all of this, at Katchen Company, our specialists are knowledgeable and experienced in their chosen market area. Katchen Company’s practitioners actively study every aspect of the products they represent. Whether specializing in one product type or representing the whole ranges of real estate, agents have comprehensive knowledge of construction methods, materials, and designs. This knowledge helps our professionals make a determination if a property is being marketed at a fair price.
Because of the complex nature of real estate transactions in Denver, Colorado, Katchen Company’s trained team is experienced in financial analysis and financing requirements necessary to close a deal. We can help open doors and provide real solutions for every one of our select clientele.
Resources: *https://realestate.usnews.com/real-estate/articles/denver-real-estate-housing-market-forecasts-trends
*https://www.bizjournals.com/denver/news/2021/12/28/colorado-housing-trends-2022-expectations.html
