Current Denver housing market trends show healthy home prices, despite a slight dip in recent months. Demand among buyers continues, as does an overwhelming lack of inventory, causing bidding wars in a seller’s market. Hopeful homebuyers need to be prepared for challenging Denver housing market trends. Partnering with the right mortgage lender and making a strong offer can tip the balance in your favor.
How can prospective buyers gain an edge with current Denver housing market trends working against them?
After remaining near historical lows for a couple of years, mortgage rates have spiked over the past year. However, experts anticipates rates to start dipping by the end of 2023 and into 2024. Buyers may be in a better position very son to lock in at lower rates.
2023 and 2024 Denver Housing Market Trends: Sellers Benefit
According to RedFin, 962 homes were sold in Denver in August 2023, down from 1,071 year-over-year. The median price for homes was about $562,400, according to Zillow, a 4.6% dip from the same time last year, and the average time on market is 16 days.
Denver housing market trends differ somewhat from the rarefied atmosphere closer to the coast, where Seattle has seen demand for larger houses drive square footage prices down even as prices hover near $1 million.
Denverites are watching apartment rentals spike across the city, with the median rate for a one-bedroom going for $1,800 and two bedrooms crossing the $2k mark at $2,400. A mortgage payment seems like a much better option.
While Denver sellers aren’t seeing the 30 and 40 offer scenarios they did in late 2021, it’s still definitely their market. Plenty of cash buyers are descending on the metro area, looking to invest in real estate and ride the prices skyward for profits before the bubble bursts.
The Denver Average Home Price For 2023
While the average home price is still just over $562,400, stories keep popping up of bidding wars that inflate home purchases well over the million dollar mark. This is forcing many people to redefine their perception of the word luxury home, as houses with as few as three bedrooms are now clocking in at prices well above median.
How can the average homebuyer differentiate their offer? When some players and slapping cash on the table and contingencies waiving is the normal order of the day, pre-underwritten offers can make a buyer stand out. Sammamish Mortgage’s Diamond Homebuyer Program, provides underwritten preapprovals, rapid closing, and personal attention from the lender to reassure agents and sellers that your offer is as strong as possible.
A Look at Denver Suburbs: Is There Affordability For Buyers?
The most in-demand Denver suburbs have plenty of range for the discerning homebuyer. Just remember you may need to fight for the home of your choice, and your monthly payment could end up being comparable to renting even if you’re getting more space.
Find out how much your monthly payment might be with our mortgage calculator, and remember to take into account the need to pay for related expenses, like your taxes and insurance.
Top cities around Denver have home prices anywhere from $300,000 to $1.4 million, so homebuyers need to weigh their options and decide how close to the big city they really need to be.
For those working remotely who don’t have to grit their teeth through a commute, there are plenty of homes under the Denver conforming loan limit (currently $787,750). In the $300,000 to $787,750 range, there are lots of choices for prospective buyers who want to be close to Denver.
- Agate at $420,072
- Louviers at $522,409
- Kittredge at $495,564
- Acres Green at $591,427
Loans over the limit can still qualify for a conforming loan if the down payment brings the loan amount down under the limit. A down payment of 12% or more could put these homes within reach for conforming loan borrowers:
Borrowers will need a jumbo loan to afford to buy in these cities unless their down payment is enough to drop the loan amount below the conforming limit:
- Larkspur at $909,447
- Genesee at $1,077,134
- Columbine Valley at $1,632,697
Cash buyers are snapping up a lot of luxury homes, avoiding loan limits, contingencies, and rising mortgage rates altogether.
For buyers looking for affordability, having the right lender is critical. Getting a lock on a mortgage rate can help too, especially with rates spiking, increasing the overall cost of home ownership and making buyers reassess their ability to purchase in a seller-friendly market.
Denver Housing Trends: The Building Boom
An interesting fact about Denver is that, unlike many other major PNW cities,new house construction is booming despite the supply chain issues for materials, high costs, and labor shortages.
Buyers just have to be patient, and expect to pay a premium for their new build. Land lots are keeping pace with pricing compared to pre-built homes better than in other cities, thanks to the strong market for brand new homes.
How new homes are being designed and built speaks to the changes in the average lifestyle of Denverites. Many families have one or more adults working from home, and that means home office space is a must-have.
Getting the ideal home in a pre-built with all of the competition going on can be tricky, leading qualified buyers to choose undeveloped lots and a buy-and-build approach to meeting their housing needs.
Renovations are also in demand, with homebuyers looking at renovation financing that allows them to make better deals in a seller’s market where repairs and prep before sale is being passed over.
With the right loan, a purchaser can get into an “almost right” house and afford to immediately do the repairs and renovations needed to get their new house into shape and worth what they paid for it. Buying a fixer upper could be the way to go.
Why Choose Sammamish Mortgage?
At Sammamish, we believe educating homeowners is the best path forward to financial success. That’s why we put so much effort into our blog articles, to help create a resource for homeowners and homebuyers.
Sammamish Mortgage has been in business since 1992, and has assisted many home buyers in the Pacific Northwest. If you are looking for mortgage financing in Washington State, we can help. Sammamish Mortgage offers mortgage programs in Colorado, Idaho, Oregon and Washington.
Contact us if you have any mortgage-related questions or concerns. If you are ready to move forward, you can view rates, obtain a customized instant rate quote, or apply instantly directly from our website.