There were also record-low numbers of new detached listings, with 1,950 new listings, and attached listings, with 908 new listings. U.S. News & World Report published its list of the 150 Best Places to Live in the U.S., and four of the top five cities are right here in Colorado: Boulder (1), Denver (2), Colorado Springs (4), and Fort Collins (5). Meanwhile, existing home prices continued to grow in June, according to the NAR. The old steel town of Allentown, PA, and the surrounding metro area . According to DMAR, 2023 will be difficult for the Denver housing market. Desirability brings demand. DENVER ( KDVR) Colorado homes could lose some of their value in the coming year. (Getty Images) The U.S. housing market in 2021 has been a year full of low interest rates, eager buyers and low inventory of homes on . Will the Denver Real Estate Market Crash? "The Real Estate Market, here in Denver, has been shifting over the last 6-9 months due to higher interest rates - but there is NO bubble and certainly NO crash. Evaluate the specifics of the Denver housing market at the time you intend to purchase. REcolorado MLS Ranks Scott Rodgers 2022 Top-40 Agent by Residential Sales, Top-5 for Denver County. The Denver housing market experienced a slight slowdown in January 2023, with 2,041 homes and condos sold in the 11-county metro area, a decline from the previous month and year, according to DMAR's latest market report. Housing units in the U.S. grew from approximately 130.6 million in 2008 to 140.8 million currently, but as a percentage had no growth. In 15 metro areas, home prices are inflated by 50% or more. Zillow forecasts that Denver home values are expected to decline by 2.2% between Nov 2022 to Nov 2023. Then theres the business traveler. Eight to 13 percent fewer closed deals in 2023 compared to 2022 will lower real estate activity. Denver is ranked as the country's 16th-most walkable city, with 600,158 residents. Warnings of a potential housing market crash have been circulating as the U.S. contends with soaring home prices, elevated mortgage rates and extremely high inflation. Indeed, some researchers and economists believe the market has begun to show evidence of a housing bubble. Higher rates induced buyer payment shock and slowed activity. These are Cash-Flow Rental Propertieslocated in some of the best neighborhoods of Denver. Aurora, Colorado is more than a growing suburb. Real estate prices stabilized in 2022 in the Far West region, partially due to the economic situation, with buyers looking for income opportunities from the land. https://www.realtytrac.com/statsandtrends/co/denver-county/denver, Quality of life, Unemployment, Rent, Tourism . If you can be at home and looking at Baldy Mountain or Lake Dillon while you work, it is pretty sweet.. Generation X made that decision, too, which is why roughly a quarter of residents are under the age of 20. I'm not a mortgage professional, but most experts I've spoken with expect rates to stabilize in the second half of the year at five to 5.5 percent. However, experts say several factors indicate Denvers housing market remains strong. This is a 3% increase compared to the previous year. 2022 was a very active year for me in Denver real estate. Historically, the market in Summit County was about a third local buyers, a third Front Range buyers and a third out-of-state. We have seen a dramatic increase in the amount of Front Range people who are buying in Summit County, Cottrell said. Record-high housing prices might be fueling homeowners and real estate investors hopes for brighter days in 2021, but experts are alerting that some dark clouds are ahead for the U.S. housing market. Real estate prices around the world are flashing the kind of bubble warnings that haven't been seen since the run up to the 2008 financial crisis, according to Bloomberg Economics . A third of the Denver metro area rents. He's also worked for Financial Times Energy, the Denver Business Journal and Arab News. And in that hot national market, Colorado st The Denver-Aurora, Colorado statistical area is home to about three and a half million people. Months of inventory is another market indicator. At first glance, the average age of 36 for residents versus 40 for the national average doesnt sound too promising. Despite the recent cooling off, there are several reasons to consider a long-term investment in the Denver real estate market. Things were even more extreme in the Denver metro region, where the market tallied a record high for annual closings paired with a . That will propel the Denver real estate market for decades to come. Mortgage rates remain an issue. While the number of homes sold in January 2023 was lower than the previous month and the same period last year, pending sales increased, indicating a resurgence in buyer activity. In summary, rent prices in the Denver Metro Area are relatively high, with significant variation depending on the neighborhood, apartment type, and season. Low inventory slows property value declines. While Denver's rents rose sharply over the past year, many cities nationwide also saw increases, including San Diego (+17.6%), Charlotte (+17.2%), and Austin (+14.6%). Must move vendors will reduce inventory. The expected value for Denver is at $461,734 based on trends in the Zillow Home Value Index going back to 1996. Another top employer in the Denver Metro Area is the State of Colorado. Home values rose so much over the past six or seven years that affordability became an issue for a person earning the median income in this area. According to Realtor.com, there are 69 neighborhoods in Denver, where properties are available for sale. Survey respondents viewed Denver's housing market even more favorably, collectively ranking it ninth overall. For a two-bedroom apartment, the average rent price is around $2,100 per month. But thats a worst-case scenario. Las Vegas, Atlanta and Phoenix were the next three most overvalued markets. When more buyers show up, prices can surge and gains off smaller values can look huge, even if they are still manageable. Youll find strong ROI numbers for the Denver real estate market. Housing was decent in 2022. Market is fucked. . Some of this article's information came from referenced websites. It is a large, thriving city in its own right. Metro Denver home prices are way higher than they would have been absent the pandemic, and while the premium is wide, it isnt as extreme as it is in many other places, according to a monthly study from Florida Atlantic University and Florida International University. Renting on sites like Airbnb is legal if you have a business license, though around half of the Airbnb rentals are thought to be violating that rule. Redevelopment is planned around Elitch Gardens today. Denver Has A Large Student Population For Rental Homes. That shortfall is not only contributing to rising home prices but also rising rents, squeezing those who are priced out of the purchase market and unable to lock in a fixed monthly payment. Other types of housing that are prevalent in Denver include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. It has a bright future, and it is poised for rapid appreciation and increasing rental rates. Downtown Denver saw multiple infill projects downtown ten years ago. It is expected that prices may rise in the future due to the low inventory of available properties. Over the past month, the average rent for a studio apartment in Denver increased by 1% to $1,390. Hiring a local property management company can help in finding tenants for your investment property in Denver. These figures represent a significant increase from the previous year's record highs of $609,056 and $688,895, respectively. 1,184 active postings began in 2022. Inventory fluctuations indicate market direction. Real estate agents are seeing multiple offers at every price point, with homes selling over the asking price and buyers waiving contingencies. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023. As of February 19, 2022, the average rent for a 1-bedroom apartment in Denver, CO is $1,769. When one considers the huge oil and government sectors, as well as the rapidly expanding aerospace and technology businesses, it's no surprise that Denver is seeing such a big job boom. As buyers continue to navigate a challenging market, one trend from the pandemic is likely to continue. "The Real Estate Market, here in Denver, has been shifting over the last 6-9 months due to higher interest rates - but there is NO bubble and certainly NO crash. Metro Denvers leaders for home price appreciation are all up in the Jefferson County foothills, places like Idledale, up 26.5%; Indian Hills, up 23.5%, and Kittredge, up 22.8%. https://www.littlebighomes.com/real-estate-denver.html Sponsored: Afraid Denvers in a housing bubble?, Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Twitter (Opens in new window), Get to know all 17 Denver mayor candidates , Afraid Denvers in a housing bubble? You could invest in rental real estate near any of these colleges, knowing you could rent or sell to people that simply want to live in the area if student demand slacks off. Housing Market Crash: Experts believe the real estate market will slow down but it will not crash anytime soon due to the minimum supply. Until the metro has more available homes, it will continue to be a sellers market. Denver home values have gone up 2.5% in the last twelve months. "For 2021,. That explains why Denver is one of the top cities for in-migration, attracting people from all over the state as well as the country. Another option is partially pre-fabricated homes like Oakwood Homes new line of stand-alone starter homes that start in the low $300,000s. On the other hand, a bad cash flow means you wont have money on hand to repay your debt. Here are the numbers for July 2022 compared with July 2021. Rents doubled in Denver during Hancocks tenure. The big picture: Colorado's market is not as skewed as others across the nation, compared to past pricing trends. The three most important factors when buying real estate anywhere are location, location, and location. Averaging 10% per year appreciation and 34% year-over-year increase in the median list price, Denver is THE #1 hottest real estate market in the country! Zillow Home Value Index The typical home value of homes in the Denver-Aurora-Lakewood Metro is currently $570,262. The average rent for a 1-bedroom apartment increased by 2% to $1,769, and the average rent for a 2-bedroom apartment remained flat. But sellers should no longer expect homes to sell in a weekend for tens of thousands over the list price. Throughout the past year, rent increases have been occurring not just in the city of Denver, but across the entire metro. Even as Denver home prices have reached new heights, the market remains attractive to residential real estate investors in the $300,000 to $399,000 price range. Cash will continue to be king and likely will become the norm in the next three to five years. 2022 averaged 1.26 MOI. February through May had MLS median days of four, and December had 30. NeighborhoodScout.com's data shows that in the past 10 years Denver real estate appreciated by nearly 146.94%. https://www.denverpost.com/2018/03/06/river-mile-denver-elitch-gardens-redevelopment/, Colleges Methodology: GOBankingRates used the following factors to determine which states could be experiencing real estate bubbles: (1) change in median home values from the peak of the last housing bubble (2005-2010) to the current median home value as of February 2019 for the 742 largest U.S. metro areas tracked by Zillow; (2) home price-to-rent . Over the coming 12 months, CoreLogic forecasts U.S. home prices will still rise another 5.9%.However, the real estate firm . The population has increased by 1.33% since 2019. The demand for rental properties in Denver also spikes during May and June, as many college graduates move to the area for job opportunities. https://www.recolorado.com/market-statistics/market-watch.aspx How To Invest in Real Estate During a Recession? https://www.dmarealtors.com The Department of the Interior includes such agencies as the Bureau of Land Management, Office of Surface Mining and Reclamation, and Bureau of Reclamation, and all have offices in or near the Denver Metro area. Does the four-to-five-month balanced market criterion still apply? For years, the Denver area housing market was so scorching . The August 2022 Rent Report from Apartment List reveals that Denver rents increased over the past month. It is expected that prices may rise in the future due to the low inventory of available properties. Denver, CO 80237-0930 General Phone: 1-800-850-2769 or 303-722-7600 Editorial . These predictions have caused many people to panic, wondering if they should sell their homes now or wait it out. In short, the answer is an emphatical no. His mission is to help 1 million peoplecreate wealthandpassive incomeand put them on the path tofinancial freedomwith real estate. "It's almost like the market is drunk," said Chad Nash, senior real estate adviser with Compass. . As the Denver Metro Housing Market continues to evolve, this blog will keep you up-to-date. https://denverrelocationguide.com/largest-employers-in-denver The median real estate prices for residential properties in Denver hovers around $530,000. 3/3 1:08P The Denver Post (Top Stories) Denver police seeking consent to track stolen cars as incidents remain on rise.