Historically, Denver has a track record of being one of the best long term real estate investments in the nation. It is the largest city in Colorado, home to just over 700,000 people. The Denver metropolitan area is home to around 2.7 million people. The Denver-Aurora, Colorado statistical area is home to about three and a half million people. Of greater important to potential investors, the area is still growing. There are a number of reasons to consider investing in the Denver real estate.
Is it going to be one of the hottest real estate markets for investors throughout 2020? Significant gains in home values are predicted in 2020 due to low interest rates, a strong job market, and a steady economy. Let’s find out more about it. Please note that there are many variables that can potentially impact the value of a home in Denver (or any other market) and some of these variables are impossible to predict in advance.
What are the Denver real estate market predictions for 2020? Let us look at the price trends recorded by Zillow over the past few years. Since 2015, the median home price in Denver have appreciated by 45.65% from $310,000 to $451,513. In the past year, the Denver real estate market cooled off, the prices increased by only 0.2%. Last year saw was the eighth consecutive year of home price gains. The latest Denver real estate market forecast is that home prices will increase by 2.2% in the next twelve months.
However, according to many experts you shouldn’t expect any sizable or significant gains based on current conditions. The latest real estate data from Zillow shows that the current median home value in Denver is $451,513. Denver is currently a buyer’s real estate market – which refers to a situation in which supply exceeds demand, giving purchasers an advantage over sellers in price negotiations.
The median list price per square foot in Denver is $375, which is higher than the Denver-Aurora-Lakewood Metro average of $267. Zillow reports that 11.1% of the listings in Denver had a price cut in Dec 2019, which is a good thing for buyers. The median price of current listings in Denver is $465,000. The median price of homes that have been sold is $438,900. The median rent price in Denver is $2,150, which is higher than the Denver-Aurora-Lakewood Metro median of $2,100.
Denver Housing Market Forecast 2020 – 2021
Here is a short and crisp Denver housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Denver is 76% and it is predicting a positive trend. The LittleBigHomes.com estimates that the probability for rising home prices in Denver is 76% during this period. If this price forecast is correct, the Denver home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Denver Housing Market Trends
We shall now discuss some of the most recent housing trends in the Denver area and compare it with past couple of years. We shall mainly discuss about median home prices, inventory, economy, growth and neighborhoods, which will help you understand the way the local real estate market moves in this region. Denver has been one of the hottest real estate markets in the country for many years.
Let’s first take a look at some of the last year’s data. The number of homes for sale in the Denver metro area was up significantly in April 2019 and the median sold price remained unchanged year-over-year, according to the data from the Denver Metro Association of Realtors. May 2019 ended with more homes for sale in metro Denver than any other month in the past five years. May saw a slight increase in Denver’s median sold price, which hit $431,000 for the entire residential market, including both condos and single-family detached homes.
For anyone looking to buy a home in the Denver area right now, the real good news is the increase in the number of homes to choose from. Metro Denver’s housing market news is that the area is already showing signs of softening and could come under further pressure if economy and job growth weakens. Home sales in metro Denver were down 14 percent in June 2019 compared to a year ago.
After a remaining almost flat throughout 2019, with a mere 0.2% rise in prices, the Denver housing market is showing little signs of a gains. Metro Denver home prices, after years of significant gains, are going as flat as last year. Despite a few slight shifts in the market last year, 2020 has begun very much still in favor of sellers. According to the Colorado Association of Realtors, the median sales price in Denver was $490,000 in November, up 7.3% from a year earlier. The number of homes available for sale, however, is down 35.4% during the same period.
Currently, there are less than two months worth of inventory for both detached homes and single family homes. According to realtors, as inventory is declining in this region, it can result in the upswing of home prices. Trulia has currently 2,434 resale and new homes for sale in Denver including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. The median price of sold homes in Denver housing market is $434,000 and homes are selling for about $375/sqft.
Article reprinted from Norada Investment Group
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