From the endless outdoor activities to the 300 days of sunshine, Denver is arguably one of the country’s best cities. And people are starting to realize it, too—Denver is consistently ranked in the top 10 lists of the fastest-growing cities in the U.S.
Due to the booming population growth, Denver, CO real estate has become quite interesting over the past few years. Continue reading to learn what buyers and sellers can expect this year.
Tons of demand
With more people moving to the area and those already in Denver trying to buy homes, the housing demand is through the roof. The demand increases every year, and we expect to see a 12.5 percent increase in home sales in 2021—the fourth-highest rate of growth in a study of 100 metro areas.
If you’re thinking about buying a home in the Denver metro area, we advise that you start looking soon, because you’re certainly not alone!
The bad news for buyers and the good news for sellers is that inventory is at record lows. At the end of 2020, inventory was down 29 percent month over month and 51 percent year over year. According to the Denver Metro Association of Realtors, if no new houses come on the market, inventory could dwindle in only two weeks. Even with the lack of inventory, Denver, CO real estate is still a hot business. In fact, experts predict the city to be in the top five housing markets in 2021.
Due to inventory issues, the competition to find a home really heated up in 2020. More than 66 percent of buyers got into a bidding war when trying to purchase their house. This makes Denver the second most competitive market behind San Diego.
Right now, the annual home price appreciation is in the double digits. The average price of a single-family home is now up to nearly $630,000, and almost $380,000 for condos and townhomes. The median price is $510,000 for single-family homes and $339,000 for condos. Additionally, there were 70 percent more homes worth over $1 million sold in January 2021 than in January 2020!
Some experts say that a potential rise in interest rates could cause prices to fall slightly, but there’s no guarantee of that happening.
The lack of inventory in the Denver real estate market isn’t the only problem potential buyers are facing. Even with historically low interest rates, many younger buyers are simply unable to afford a home in the Denver metro area. There were 45.4 percent fewer homes sold in the $300,000 range in January 2021 than in January 2020.
Those high prices, paired with the fact that Millennials have more debt than any other generation, means bad news for a lot of potential buyers.
Building a custom home? Talk to our team!
If you’re going the custom route instead of dealing with the hassle of Denver real estate, call our team at High Plains Engineering & Design, LLC. From structural design to in-depth inspections, we offer an array of services that can meet all of your needs.
Categorised in: Structural Engineer