With only two months left in the year, many Denver home buyers are already looking ahead to 2018. So we have rounded up some market statistics and other trends useful to anyone planning on buying a home in Denver at 2018.
Home Prices Up Sharply During 2017
Home prices across the Denver metro area have risen steadily over the last couple of years. As a result, those who are buying a home in Denver in 2018 will encounter higher housing costs.
According to the real estate market analysts at Zillow, the median home value for Denver rose to $386,700 as of October 2017. That was an increase of 7.8% from the same month a year earlier. Looking ahead, the company expects prices to rise more slowly, climbing by around 3% over the next 12 months.
Denver Real Estate Market Still Hot, but Cooling
In September, Realtor.com updated its ranking of the “hottest” real estate markets in the country. And Denver made the list again.
To measure demand, the company looked at the number of days it takes for homes to sell. They also consider the number of views a listing receives, along with other factors that relate to housing demand.
Out of the largest metro areas across the country, Denver was ranked #13 on their list of hottest markets — up five spots from the August ranking.
But the Denver real estate market is also showing signs that it might be cooling down. According to the latest national housing report by RE/MAX, homes listed for sale in Denver are selling a bit more slowly than in the past. But it still ranks pretty high on the list, nationally speaking.
According to the RE/MAX report, the metro areas where homes are selling fastest included Omaha, Seattle and San Francisco. Denver came in at #4 on this list.
Nationally, homes listed for sale across the country spent about 49 days on the market in September 2017. During that same month, homes for sale in Denver spent 27 days on market. This is a relevant statistic for anyone buying a home in Denver in 2018.
The bottom line here is that there is still a high level of demand within the local real estate market, even though price growth might be slowing down a bit.
Housing Inventory Remains Tight
Inventory is a driving factor within the Denver real estate market, and it’s a trend that will likely continue into 2018. According to the RE/MAX report mentioned above, Denver has one of the lowest levels of housing inventory of any major city in the country.
A “balanced” real estate market has about a 6-month supply of homes for sale, according to housing experts. But many cities across the country are experiencing shortages of homes for sale.
Nationally, there was about a 3.5-month supply of homes for sale, as of September 2017. Denver was much lower, with a meager 1.6-month supply.
Message to Those Buying a Home in 2018
So what does this mean for those who are buying a home in Denver in 2018? Among other things, it means buyers should expect a high level of competition. Supply and demand indicators reported by industry groups and analysts suggest that the Denver market will remain competitive in 2018.
And while home prices in the area might slow down a bit over the coming months, they are expected to continue rising throughout 2018.
Those who are planning to buy a house in Denver in 2018 should also be prepared to move quickly when the right property comes along. 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.