You’ve heard that the Denver real estate market is booming, and you’ve seen the headlines proclaiming record-breaking home prices and rents. But what do these trends mean for you? What happens if there’s no more inventory? The good news is that despite the lack of supply, buying homes is still accessible to Coloradans—if you approach the process with the right preparation and work with the right professionals. If you’re interested in finding out more about the changes in our local real estate market and how it affects you, read on.
Home Prices Keep Rising
The low inventory of homes on the market continues to push prices up. The median price of a single-family house sold in metro Denver increased 19.3 percent from $502,775 at the end of 2020 to $599,990. In December, the typical sales price of condos and townhomes was $381,500, up 15.6 percent from $330,000 in December 2020. Additionally, new listings dropped 14 percent year-over-year; by month’s end, only 1,477 sellers had homes and condos listed —the lowest number since 2016 and a decline from 2,541 new listings a year ago. (Denver Metro Real Estate Market Trends Report – January 2022)
The Denver Real Estate Market Remains Strong
The housing market in Denver is still a seller’s market, though it did slow down at year-end. There were only 1,477 homes and condos available to buy at year-end—the lowest count since 2016—and no more than 576 listings in any neighborhood. It’s not surprising that prices soared to record highs at year-end—up 18% overall compared to 2020.
Intense demand and a continuing lack of supply marked last year’s real estate climate. The number of listings in Denver dropped to its lowest point since 2016, with inventory dropping across all housing types, including single-family homes, condos, and townhomes. What is causing this lack of inventory? We often cite various factors, including continued migration to the area and lack of new development caused by labor shortages, global supply chain issues, and local resistance to medium and high-density infill development.
Equity Gains for Denver Area Homeowners through Low Inventory
As we have all seen, several years of low for sale home supply, combined with strong demand, is driving record price gains. This means equity gains for homeowners all over the Denver Metro Area. Your home is probably worth a lot more than you realized.
If you have been holding on, planning to sell when the timing is right, here’s your nudge. The timing is right… right now.
Interest rates are still low, and conforming loan limits have increased as of January 1, 2022, giving buyers more purchasing power than ever before. The conforming loan cap for 2021 was $548,250. It’s risen about $100k to $647,200 this year, and it’s close to $1 million in higher-cost areas.
Record low inventory combined with high buyer demand point to almost perfect selling conditions.
If you plan to sell a property in this market, keep in mind that working with an agent is not always a good fit for every home seller. However, working with an experienced, insured real estate professional with a fiduciary responsibility to you will increase your chances of selling quickly, at the best price, and reducing your personal liability.
Would you like help finding the right agent to sell your home? We can help. We are always happy to talk about your goals and the buying and selling process. Then, we can provide you with a recommendation for moving forward, whether it’s working with a Bluebird Real Estate Group agent or some other path.
What Low Inventory Means for Denver Area Home Buyers
It’s not a new trend in Denver metro real estate, and homebuyers are becoming accustomed to it – high prices. The upside: with today’s extremely low interest rates and the recently increased conforming loan limits, lenders can offer more financing options to buyers than they could in 2020.
Working with an experienced professional who can get you under contract for the home you want is crucial in this cutthroat market. At Bluebird Real Estate Group, our agents specialize in negotiation and client advocacy. We are up to date with all of the current negotiation strategies. If you want to buy a home, we can help you make that happen. Not everyone shopping for a home this year is going to get one. But our clients will.
It’s a tough market, but our agents are tougher. Contact us today if you want the best agents who can get you the home you want.