This blog will keep you up to speed as the Denver Metro Housing Market evolves and if the market is shifting toward buyers. According to DMAR, the real estate market has grown more balanced and is down just over 3% month over month. However, it is up 11% year over year, stipulating a more stable market. The lower interest rates, according to historical trends, may provide opportunities for people previously exhausted by the process.
One of the primary indicators of a changing market is the reduction in the close-price-to-list-price ratio to 100.81%. Buyers are becoming pickier about what they want and frequently question whether and how much they can pay below the asking price. A seller cannot just put a sign in their yard and expect their home to sell. Every indicator leads to the Denver home market being more buyer-friendly.
The seasonal cooling was also noticed in July, as per DMAR's Luxury Market Report (real estate sold for $1 million or more). Since June, new listings are down 22.13%, pending sales are down 18.16%, and closed houses are down 30.80%. In July, there were 718 new luxury listings and 492 closings. Inventory is increasing. Inventory has climbed 39.05% over the previous year, with detached homes accounting for most of the increase.
Notably, the months of inventory for detached luxury homes climbed in July to 2.37 months and 3.31 months for attached luxury homes. This indicates that the Denver metropolitan area's luxury market, particularly for attached luxury residences, is no longer in favor of sellers as it had been for the previous two years. In addition, July saw the most expired listings in the luxury market, at 183. The close-price-to-list-price ratio of 100.44% in July, down 3.11% from the previous month, supports this trend toward a more balanced market.
Forecast for the Denver housing market in 2022 and 2023
The Denver real estate market forecasts for the rest of 2022 and 2023 indicate that home prices will rise. Throughout 2021, interest rates remained low, and buyer demand remained persistently high. According to DMAR, buyers purchased more residences last year than any prior year, totaling 63,684. While demand was at an all-time high, the number of new listings on the market declined 5.26% over the course of the year.
Denver has a history of being one of the top long-term real estate investments in the United States. The data on home price appreciation over the last several years shows Denver's healthy economy allows purchasers to spend more on housing, causing real estate prices to rise.
In September 2022, the average property value in Denver was roughly $615,000. Since a year prior, homes have sold for 15% more. Denver is currently a seller's market, which indicates that demand outnumbers supply, providing sellers a price bargaining advantage over buyers.
Similar growth noted by NeighborhoodScout.com shows that Denver real estate rose by about 146.94% over the last ten years. This equates to a yearly real estate appreciation of 9.46%, putting Denver in the top 10% of all cities in terms of real estate appreciation.
The Denver appreciation rate has been about 14.86% over the last twelve months alone and 1.29% over the last quarter. If the trend continues, the annualized appreciation rate will be 5.28%.
Here is the most recent housing prediction for Colorado, Denver, Denver County, and the Denver Metropolitan Statistical Area: The shortage of supply and increased demand for property from new homebuyers are expected to drive up prices over the coming year. However, the year's second half will witness a return to normalcy. Higher borrowing rates are likely to result in increased inventory, lower or flat prices, and longer days on the market in the MLS.
Is Denver a good real estate investment?
Should you consider investing in Denver real estate? To know what the market holds for real estate investors and purchasers in 2022 and 2023, you must delve further into local trends. With 600,158 residents, Denver is the country's 16th most walkable city. It has some public transportation and is easily accessible by bike. With a Walk Score of 93, downtown Denver is the most walkable district in the city.
According to the Urban Land Institute and PwC, Denver rated 13th in overall real estate investment and development among 3,000 industry professionals polled and interviewed. Survey respondents rated Denver's housing market even higher, ranking it eighth overall.
There are various reasons to consider a long-term investment in the Denver real estate market. For many years, the Denver housing market has been fueled by a high demand for homes, a thriving economy, and increased job opportunities. Denver serves as a central commerce hub for the country and is home to several major firms in the central United States. It ranked sixth on Forbes Magazine's list of the "Best Places for Business and Careers." Several Fortune 500 firms call Denver South home. Mining and energy firms such as Halliburton and Smith International are also based there.
Buying or selling real estate is one of the most critical decisions you will make. Choosing a real estate professional is an essential element of this process. Whether you are looking at Washington Park homes for sale, Cherry Hills homes for sale, or Meridian Village homes, The Apollo Group is well-versed in crucial market elements such as changes in Denver’s market conditions, market projections, optimal sites, timing, and interest rates.
Ready to get started? Contact the The Apollo Group today!