The Future of Denver Real Estate Market
Colorado and the Downtown Denver real estate market has continued to be a trendy and hot topic of conversation as people question what kind of housing prices are ahead.
While it is difficult to say if Denver will ever see a balanced market, we are still witnessing post-pandemic fallout with a decrease in home value and an uptick in mortgage rates.
Even though the average real estate listing price will continue to climb, Denver housing is still in high demand.
And when the demand is high but the supply is low, sellers seem to have the upper hand like last year.
How Will This Affect Buyers and Sellers in the Denver Metro Area?
With the Denver housing market trending towards a shift in dynamic, we can’t deny that buyers will have a competitive race to secure their next house.
New listings are rising, but compared to what was seen in pre-pandemic years, the real estate market is not making things easy on buyers.
A cliff dive in home prices and interest rates has been whispered about for a long time.
Still, potential buyers are not yet benefitting from a bubble pop, and with decreasing home values, things might get a little weird for buyers and sellers alike in Colorado.
Denver Housing Market Forecast Reveals Slim Pickings in 2024
The DMAR market trends committee shows a low inventory in the current Denver housing market compared to most previous years of sales – and other expensive cities across the country are noticing a similar trend.
New listings seem few and far between, which cannot be attributed to a seasonal slowdown.
Even with active listings, sellers have experienced an average of 45 median days in the Denver Metro Area market.
It seems sellers are more reluctant to sell, and buyers are chomping at the bit to bid, but throughout 2023, realtors have seen everything move at a slower rate and the median home sales price closing out at a lower rate than the initial listing price!
If the past year indicates what the next few years have in store for Colorado buyers, a new house purchase may be challenging, but that doesn’t mean you should pass up the property of your wildest dreams.
First-Time Homebuyers are Still Fighting to Win New Listings
The current state of home buying and selling within the Denver real estate market is slowly but surely revealing that those high mortgage rates may take a turn for the better in the Denver Metro area.
Still, first-time homebuyers are pushing to see new inventory – housing is hot, and those looking to buy for the first time are interested in nothing other than a sale.
While things are competitive in the Denver housing market, it doesn’t seem the complex nature of real estate is deterring first-time buyers from securing their new home in the Denver area and surrounding suburbs!
First Time Homebuyers Are Leading the Pack, Even in Popular Neighborhoods in the Denver Area
The housing market is swarming with first-time homebuyers, and they are finally experiencing relief in the fight to the finish line.
These buyers are entering the market during increased mortgage rates and switched the patterns in their favor.
They are choosing to move in quickly, which should decrease the median days a home is active on the real estate market!
Acceleration in High Prices and Home Sales
We are not seeing this solely with first-time buyers; the housing market will see a sharp turn after the slow season towards quicker home sales despite the asking price.
Currently, the average closing price in Denver is dependent on the square foot, neighborhood, condition, etc.
However, the general property sale in the Denver area is approximately $570,000, a decrease in sale prices but an increase in cost per square foot.
Leaving a Higher Mortgage Rate Environment
With the Denver housing market inventory low, buyers have some benefits by entering the game, as they control the asking price, real estate value, and the final sale costs negotiation is critical.
As we previously stated, with more buyers than sellers, they are shifting mortgage rates down and securing their spot within the real estate market as reliable players.
This will create more change in the marketplace because when something shifts in one direction, it typically causes a ripple effect, even if that occurs slowly.
Market Conditions Predict Increased Real Estate Prices
The Denver Metro Association of Realtors and DMAR Market Trends Committee have revealed that homes priced higher will stay that way.
Expect a high list price on almost any Denver home, but the interest rate has begun declining and is projected to continue its drop in the coming days, moving into 2024.
Last year, it seemed to be a sneak peek into the upcoming trends for the real estate market in terms of high property prices, higher interest rates in mortgage rates, and sale prices.
Denver Home Prices are Still Higher Than the National Average
Even internet housing listings on Zillow, Redfin, and Realtor offer accurate Denver inventory, home prices, and the total number of houses on the market in any given neighborhood – and sometimes, it can be intimidating for buyers at first glance.
Money will always be a factor with any property purchase, residential, commercial, or otherwise, and understanding how the housing market may move in the coming years can impact your ability to make that purchase.
It has also been something that many Denver residents have seen a significant block in both understanding and accessing the local real estate market.
Looking at the average list price of the typical inventory going up for sale in the Mile High can be intimidating, and for many young potential buyers, families, and otherwise – the idea seems too large to grasp the price of sale the same way.
Potential Buyers May See Low Mortgage Interest Rates
Don’t let the sale price intimidate you too much because even with the average listing price in Denver at nearly $600,000 last year, 2024 is projecting lower mortgage interest rates!
The real estate market will always move according to buyer’s and seller’s demand.
While everything has remained competitive within the last year and in the upcoming year, that doesn’t mean mortgage rates will follow the same trend – because it doesn’t look like they will.
Even if You Have to Reach Past the Asking Price
In 2023, home mortgage rates have begun peaking at the highest rates we have seen in the past five years – with interest rates jumping around and all the way up to nearly 7.4%.
This has been a major boundary for those interested in purchasing a home in Denver and sometimes is the blocking point between that person or family and their new home.
The interest rates should begin to decline during the Winter months and end of 2023 into 2024, which can open up new opportunities for Denver homebuyers and bring a silver lining from all the ups and downs.
There have been whispers about this for some time, but now, it is finally on the horizon, opening up possibilities for home buyers!
Approvals on Home Loans Will Get Easier in the Mile High City
With the declining mortgage interest rates, this means approvals for home loans should become a bit more accessible to buyers and those hunting for a first-time sale!
The real estate market in Denver no longer has to be a gatekeeping society, and plenty of modes of support are available for those interested in purchasing their first home despite rising prices.
Real estate in Denver doesn’t have to be something you are constantly worried about, so be prepared to call up your local, trusted moving services to relocate to your new home!
Keep Your Eye on the Active Listings
This being said, that doesn’t mean that you can push past your competition quickly.
There remains an eagerness for all buyers after choosing to sell their Denver home, and depending on the neighborhood – you may want to move quicker than initially projected.
There are plenty of very sought-after neighborhoods in both the downtown and suburbs of Denver, so even though the median days of real estate on the market were trickling past the projected timeline for sellers, these rates will likely speed up in the year ahead!
New Home Construction of Single-Family Homes is On the Rise
Last year, many Denver residents chose to take things into their own hands, and instead of participating in the buying process for property, they ventured out to purchase land and build their dream.
Many developers are taking entire communities in the Denver suburbs and offering families the possibility of customizing their property at a reasonable price.
While this is not for everyone, if you are flexible on the neighborhood you live in, it is a viable possibility for under $350,000 to $500,000.
If you hope to find a way into the real estate market but want to relocate as quickly as possible, this is undoubtedly an option to look into.
Don’t Expect a Seasonal Slowdown for New Communities
While there will always be a slowdown towards the Winter months of every year, new communities are being built tremendously across Colorado.
This is primarily due to the influx of new residents as the population has continued to rise throughout the years, but it also comes from demand.
There are plenty of Denver residents who are not interested in the traditional real estate market as is and want something different.
When you have a community of people pushing for changes, then you will see change slowly begin to happen because there is money to be made, and moving and storage companies in the Denver area are always available to help ease you through the relocation project, whether you are heading to a new construction community or otherwise.
The Luxury Market is in a StandStill
The luxury market in Denver tells a bit of a different story because it is a different tier of real estate.
The median days luxury homes are on the market seem to be backing up.
There are many months of luxury real estate currently on the market ranging from $1.5 to $2 million, and this becomes even more backed up when you hit homes priced over $2 million.
This is one of the places where buyers will see more flexibility in their purchasing and negotiation power.
Luxury is Seen On the Market Longer
Neighborhoods like Cherry Creek, Cherry Hills, and Wash Park have seen fewer and fewer homes priced in a manner that will enlist a quick sale – nor are sellers willing to budge on things, even if their house is on the market longer.
This leaves some wiggle room for buyers, and things are quite as competitive in the usual real estate marketplace.
Attempting to sell has also become a more complex process, but prices are not making that any easier.
Denver Remains in High Demand in 2024
While there will always be changes in the price of real estate, home values, mortgage rates, etc., there will always be people buying and selling homes despite what is happening in the marketplace.
In 2023, people were increasingly worried about attaining things at a reasonable list price, and sellers were concerned about what they would gain by selling.
In 2024, many of the same questions have arisen, but it seems that even though the market will be competitive, it should be a relatively good time to purchase.
You may be able to avoid an even higher price climb and benefit from lower mortgage interest rates, but it is up to you when the time is right.
If you are in the market for a new home, you are likely also searching for the best moving companies in Denver.
Make Your Move to the Best Neighborhoods in Colorado
When you are looking for local movers near me, securing a licensed and experienced company is pivotal in making your home buying and moving experience stress-free.
Eden’s Moving Services is a local, family-owned business providing elite moving and professional packing services to Mile High residents and those moving into their first home or a new home in 2024 – complimentary packing supplies are included on local moves!
Eden’s is dedicated to developing and maintaining a healthy and accessible moving environment for Denverites because relocating doesn’t have to be stressful.
The home selling and buying process can be complicated enough, so if you are heading into the market in 2024 – Eden’s movers will handle the rest!