Summary: Home prices in Denver may have increased at a moderate rate over the past few years, but the price increases have slowed down somewhat in the city. In this article, we’ll take a look at what the Denver housing market will do throughout 2020.
Only a couple of months into the year, many Denver home buyers are looking at 2020 as the year to make a home purchase. To help, we have rounded up some market statistics and other trends useful to anyone planning on buying a home in Denver in 2020.
Home Prices Slow Down in Denver, But Expected to Pick Up in 2020
Home prices across the Denver metro area have risen steadily over the last couple of years, but they’ve slowed down over the past few months. That said, those who are buying a home in Denver in 2020 will still encounter high housing costs.
According to the real estate market analysts at Zillow, the median home value for Denver rose to $454,900 as of February 2020. That was an increase of 0.4% from the same month a year earlier. It’s been a rather neutral few months, but looking ahead, the company expects prices to increase more rapidly and climb 3.6% over the next 12 months.
Denver Real Estate Market Considered Neutral
According to recent data, the number of homes under contract or pending sales spiked 43% from December 2019 and 24.2% from last January. This is having an effect on inventory, which is still rather tight in Denver and expected to be this way throughout the better part of 2020.
According to Redfin, the market is still a competitive one in Denver, and homes typically sell after receiving one offer. The average home sells for just under list price and goes pending in approximately 28 days, while hot properties can go pending in as little as 7 days.
The bottom line here is that there is still a high level of demand within the local real estate market, even though price growth may have slowed down a bit. That said, prices are expected to pick up in 2020.
Housing Inventory May Be Climbing, But Demand Keeps Supply Low
Inventory is a driving factor within the Denver real estate market, and it’s a trend that will likely continue into 2020. Lately, Denver’s housing inventory is increasing, but demand is keeping a lid on available supply.
Housing stock may have increased, but the high demand among buyers is eating up whatever is available. Housing inventory in January spiked, but it just can’t keep up with demand. Right now, there is less than a 2-month supply of inventory.
Message to Those Buying a Home in 2020
So what does this mean for those who are buying a home in Denver in 2020? Among other things, it means buyers will still face some competition, but not as fierce as it may have been a couple of years ago. Supply and demand indicators reported by industry groups and analysts suggest that the Denver market will remain somewhat competitive in 2020.
Those who are planning to buy a house in Denver in 2020 should also be prepared to move quickly when the right property comes along, though they still have some time before putting in an offer without having to rush into it thanks to rising inventory. Buyers can benefit greatly from doing a little research ahead of time, paying particular attention to recent sales prices in their target areas.
It’s also wise to have your financing arranged ahead of time, before entering the market. And that’s an area where we can help you.
Need a Mortgage in Denver?
If you are ready to apply for a mortgage in Denver or simply have some questions about home loans, Sammamish Mortgage can help. We are a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.