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As these market trends are expected to continue into 2021, it’s safe to say Colorado home prices will keep increasing. For most, now is not an ideal time to buy a house in Colorado, as listing prices are high and options in the market are limited. However, mortgage rates in the state are currently a bit lower than average, so you can save money over time if you get a good rate. Working with a local real estate agent can help guide your decisions and point you to the best deals in the state.
The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. At first glance, the average age of 36 for residents versus 40 for the national average doesn’t sound too promising. However, this long-established city has already been noted as a great place to retire.
How Was the Housing Market in Denver Last Year?
But in 2019, it experienced a cooling trend where home values appreciated by a mere 1%. The year ended with an average home price of $486,695 and a median of $420,000. This was up less than three percent from 2018, but up almost 90 percent from 2010. Let us look at the home price appreciation trends recorded by Zillow over the past year. According to DMAR's Luxury Market Report (properties sold for $1 million or greater), there was a significant slowdown with only 286 new homes hitting the market. This was the biggest drop in inventory from the prior month of any price segment sector, down 34.10 percent from October.
According to DMAR's latest market report, average MLS days jumped 20% month over month to 36 days, representing a 140 percent rise at this time last year. The attached market also increased by 20% month over month to 30 days, representing a 76.47% rise from this time last year. Days in the MLS have climbed in direct proportion to interest rates as the number of active listings has increased since May. This speedometer reflects the state of the region’s real estate market using housing inventory, price gains, home sales, interest rates, and larger economic factors. No.Real Estate Market Statistics 1When it came to selling their home, 86% of sellers used the services of a real estate agent.
We are the MLS
Use our directory of local real estate experts to connect with an agent that will guide you every step of the way. Colorado offers smart investment opportunities in several different thriving markets. Many will make the move to cities such as Denver, Greeley, Fort Collins, and Boulder in 2022.
The high prices combined with the lack of higher gains have slowed down fixing and flipping investment properties in Denver. The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to Denver and want to purchase property to rent out. The three most important factors when buying real estate anywhere are location, location, and location.
Ready to Invest in Colorado Real Estate?
That inventory glut made it difficult to sell a home and contributed to sharp price declines. Colorado is a good state to invest in real estate, especially in cities with a high demand for housing, like Denver and Colorado Springs. But if you want to maximize your investment, then you should first do some research on the best neighborhoods and devise a plan for the properties you will buy. Colorado, namely the Boulder and Denver real estate markets, experienced effervescent gains long before the insanity that ensued with the pandemic. However, at the start of 2020, the Colorado housing market appeared to be falling flat, and, in some areas, even dropping. I expect the market will continue to slow until it gets to a sustainable level of growth.
Jobs are a major reason why people move to Denver in the first place. Denver’s unemployment rate has been well below the national average for years. Denver rents have increased 0.8% over the past month, and are up sharply by 8.8% in comparison to the same time last year. Currently, median rents in Denver stand at $1,443 for a one-bedroom apartment and $1,785 for a two-bedroom.
Fort Worth Real Estate Market Trends for 2020
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. Because interest rates affect a buyer's capacity to afford a home, buyers are taking more time to examine the value of each home, indicating that buyers are pickier. The average price fell 0.58 percent from $736,675 to $732,437 month over month. While this is a slight decrease, it is a 4.17 percent rise over this time last year, when the average price was $703,119. Furthermore, market-wide price decreases are decreasing, with close-price-to-list-price percentages falling by only 0.40 percent for attached and detached houses.
Denver Metro Area is still a seller’s market across the board but the historically low mortgage interest rates did help buyers as far as housing affordability is concerned. The months of inventory for single-family detached residences is 3.43, while attached properties have a month of inventory of 3.08. The Luxury Market offers the most months of inventory of any price range.
In other words, based on the last month’s key housing market indicators, the 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. Sale prices are much higher than average, and properties don’t stay on the market for very long.
In May 2022, single-family home sales in El Paso County, Colorado increased by 4.9% while new listings increased by 18.9% year over year. The median sales price has reached a new peak of $490,000, which is +13.6% higher than last year. Total available properties for sale also increased by 63.8% year-over-year which amounts to 0.9 months of supply. Months of supply is a good indicator of whether a particular housing market is favoring buyers or sellers.
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