As the demand for homes continues to rise in 2021, construction spending has increased, and mortgage rates remain low.
The Colorado real estate market is very healthy right now, and prices are expected to pick up over the course of 2021. Certain markets, in particular, are very hot right now, including Denver and Colorado Springs, due largely because of shrinking inventory. Mortgage rates continue to be extremely low in Colorado right now as well. And considering how prices are anticipated to increase even higher in 2021, now might be the perfect time to get into the housing market in CO before prices really start to take off and to take advantage of low interest rates.
Property Values Are Up
Average home values in Colorado increased by 7.1% over the past year. Today, the average home value in Colorado is currently $431,100, according to Zillow.
Home Prices in 2021
Colorado’s average home is expected to increase10.2% over the next 12 months to reach $475,000 from today’s price of $431,100.
Housing Inventory Shrinking
The supply of available homes for sale is decreasing across Colorado. There is currently only a 2.2-month supply of homes on the market to meet buyer demand.
Active Listings Are Down
Active listings are down over 65% in CO compared to 12 months earlier.
30-Year Fixed-Rate Mortgage Rate Remains Low
According to Freddie Mac, current mortgage rates in Colorado are currently 2.67% for a 30-year fixed-rate mortgage, 2.17% for a 15-year fixed-rate mortgage, and 2.71% for a 5/1 adjustable-rate mortgage (ARM).
Sales Up in Denver
Home sales are expected to rise by 7% in Denver in 2021.
Denver – CO’s Hottest Market
Denver was the hottest market in CO in 2020 and is expected to continue sizzling into 2021. According to Zillow, home prices are expected to increase by 10.0% over the next 12 months.
Colorado Springs Market Hot in 2021
Colorado Springs is also expected to have a hot real estate market in 2021, with home prices expected to increase 11.0%, according to Zillow.
Heating Up in Boulder
Boulder may have been one of the cooler real estate markets since October in 2020, but it’s expected to pick up in 2021. Home prices are anticipated to increase by 9.9% over the next 12 months.
Fort Collins – A Hotspot For Buyers and Sellers
Fort Collins is expected to be one of the top hotspots across the country for buyers and sellers over the next couple of years. This is based on the fact that the population has increased by 17% recently, according to the National Association of Realtors Research Group (NAR). Zillow predicts prices will increase by 9.9% over the next year in Fort Collins.
Need a Home Loan in Colorado?
If you have questions about home loans in Colorado, we’re happy to help. Sammamish Mortgage is a mortgage firm local to Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. Our experts will walk you through our mortgage programs to see which one is best suited for you. Contact us today with any questions you have about home loans in Colorado.