Colorado’s real estate market may be seeing some positive shifts heading into the new year. Recently the number of listings remain tight by previous standards for the city, which is inevitably driving home buyers to grapple amongst a limited number of properties. Compared to national averages, however, Colorado is a relatively relaxed market for buyers. The increasing prices on Colorado’s real estate are expected to slow within the new year – making 2020 a better and more ideal time for home buying. Below are some of the latest trends, updates, and forecasts for Denver’s real estate market as we head into the new decade.
Will the Real Estate Market peak in 2020?
Home prices within the Denver Market have risen steadily over time, especially within the past five years. This is due to contradictory supply and demand combined with Denver’s growing population and job opportunities. However, based on more recent statistics, home prices are beginning to slow down for the first time since 2012. This is a big sign that Denver’s housing market may be nearing its peak for current and future real estate, and good news for those looking to purchase in 2020.
Slower Home Sales, Slower Inventory
The number of homes listed for sale within Colorado have increased a bit over the past year. This is positive news for home buyers, as it increases the possibility of finding a satisfactory property. However, the demand on the market is still high compared to the level of supply when considering other big cities across the United States. Generally speaking, Colorado’s inventory is constrained compared to New York and California markets, and that could carry over into 2020. This is something investors should consider as they start their search. My recommendation is for buyers to give themselves plenty of time to find the right property, and to work with a Realtor that has expert knowledge of the area you’re interested in living.
Low Mortgage Rates Causing Higher Demands
Low mortgage rates are another trend Colorado house hunters should be on the watch for. Since November of last year, the average rate for a 30-year fixed loan has steadily dropped and is now below the common threshold. These low rates inevitably led to an increase in home loan applications this year and there’s no end in sight. Homebuyers should expect this trend to continue into early 2020, as the 30-year fixed mortgage rate is predicted to drop even lower. Although the home prices in Denver are seeming to slow down, a sense of urgency and hustle amongst potential buyers may still be needed – after all, there’s no telling how long these rates will last.
If you are looking to purchase a home in Colorado next year and would like more details on how to optimize your chances on the market, contact me. As a local expert, specializing in the Golden, Genesee and Evergreen markets, I’d be happy to help you determine next steps.