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 where the Denver housing market might be headed into 2020.
With only one month left in the year, many Denver home buyers are already looking ahead to 2020. So we have rounded up some market statistics and other trends useful to anyone planning on buying a home in Denver next year.
Home Prices Slow Down in Denver in 2019
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 $424,300 as of November 2019. That was an increase of 1.5% from the same month a year earlier. Looking ahead, the company expects prices to rise even more slowly, climbing by just 0.4% over the next 12 months.
Denver Real Estate Market Considered Cool
According to an article in the Denver Post, the pace of home sales over the past couple of months is down quite a bit and median prices and not climbing nearly as fast as they did just a short time ago. The Denver Metro Association of Realtors says that the number of homes and condos sold in the metro Denver area in September dipped 20.2% from August, but are still up 2.2% year-over-year.
However, it’s not yet a buyer’s market in Denver, despite the cooling of the market. The recent decline in sales wasn’t as significant as they were the same time last year, which then signalled the end of a strong seller’s market. While Holmes might be taking longer to sell, price reductions are more common, and sellers are making more concessions, the general consensus still remains that a buyer’s market isn’t yet here in Denver.
To quote the article, “There have been changes, but we have not shifted to a buyer’s market.”
Nationally, homes listed for sale across the country spent about 41 days on the market in October 2019. During that same month, homes for sale in Denver spent 32 days on market. This is a relevant statistic for anyone buying a home in Denver in 2019 and 2020.
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 is Climbing
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, giving buyers a little more slack when searching for a home.
There were 9,286 active listings in September, marking a 5.44% increase from the same time last year. With the increase in inventory in Denver, buyers have more properties to look at, and with more choices, they can take their time before putting in an offer.
Message to Those Buying a Home in 2019 and 2020
So what does this mean for those who are buying a home in Denver in 2019 and 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 2019 and 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.
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