If you’ve been following the Denver real estate market for the last few years, it’s no surprise that Colorado and especially the Front Range is a burning hot market! As housing prices rise and homes fly off the market soon after they are listed, it can make you wonder if the housing market will ever cool down.
If you’re buying or selling a home, you’re going to be very interested if the market is cooling down so that you can act at the right time. You may also be concerned to know what market trends are coming down the pipeline. For example, first-time buyers may be anxious to get into their first home and want to avoid overpaying. Spoiler: the Denver housing market is still hot, and likely will be for the foreseeable future, because inventory of houses is lower than the number of buyers who are looking to purchase.
As I’ve stated in detail in other blog posts, the housing market continues to be so hot because of a shortage of supply of homes and too many buyers. It is the basic law of supply and demand. This scenario, as opposed to the housing bubble pop which caused the crash of 2008, is a totally different issue. So if the Denver housing market does start to cool down, it will likely just adjust based on market trends as opposed to an abrupt change or crash. If you’re thinking of buying or selling soon, below are some things to keep in mind when assessing the Colorado housing market and when or if a cool down in coming:
FACT #1: Real estate markets fluctuate
Everyone has an opinion about the real estate market, and the economy in general, and it’s easy to listen to all of it and start panicking or making decisions based on emotions. However, I am a REALTOR® and a member of NAR (The National Association of REALTORs®) and I keep up with market trends and I have been through many changes in the market in the last two decades. One thing I know for sure is that real estate markets fluctuate. Depending on a lot of variables and market factors, the Denver housing market will get hot, cool down a bit, and then perhaps find a sweet spot for a little while. Through these fluctuations, I always advise my clients on the best route based on their lifestyle and needs.
FACT #2: Adjustments happen
The average housing price in Colorado, including areas outside of the metro area as well, is somewhere around $700,000 and it continues to stay consistent. In the first half of the year, we’ve seen slight changes in price and you may start to see sellers slightly lowering the price if their home sits on the market for longer than a few weeks. As we’ve been used to seeing homes stay on the market for less than a week, it can cause a seller to lower their price if their home doesn’t sell immediately. We potentially may see adjustments in prices, as sellers try to find the sweet spot for the current market, and adjustments are a perfectly normal part of the housing market.
FACT #3: Housing pricing have been driven by supply and demand
As mentioned already, the Denver housing market prices are a result of low supply and high demand. The more people who move into Denver every year secure that housing will be a great investment in Denver for a long time. Given that, census totals have seen fewer people move to Denver as compared to recent years. If Denver ever experiences another mass change in either people moving either in or out of Colorado, then the housing market could change based on that.
Are you ready to sell your home quickly? Are you in the market to buy or sell your home? Call and text me at (720) 323-4176 or email me at [email protected]