As the first month of 2021 comes to a close, it's clear that low inventory, high demand, and lower than low rates will lead to new residential construction this year.
Summary: Investing in real estate is one of the best ways to build wealth over time, but one of the keys is to find the best locations to invest in. In this article, we’ll go over some of the best real estate markets in CO to invest in to maximize your investment in 2021.
When it comes to investing in real estate, location is the most important factor to consider. You want to be able to maximize your ROI, and a hot market can help you do just that. Real estate investors in CO who want to build up a strong investment portfolio always keep an eye out for hot markets, which gives them a chance to pick up properties that add to their portfolio value.
A word of caution about hot markets is that if you learn about them after they are already hot, you may have missed much of the run-up that made them hot.
Clever real estate investors try to anticipate markets that will heat up before they do, so they can buy properties in advance of increasing values. Selling properties in a hot market is how they capture profits. So, where are the hot real estate markets in Colorado that you should keep an eye out for?
The Hot Markets in Colorado
The state of Colorado has long been home to a number of hot housing markets thanks to its desirability. But exactly where should you look to capitalize on a hot location and park your capital to realize maximum gains?
Let’s go over some of the hottest markets in the state to help you narrow down you’re shortlist:
The median home value in Colorado Springs is $348,477, with home values having increased 12.6% over the past year.
The median home value in Pueblo is $219,759 with home values having increased 12.9% over the past year.
The median home value in Grand Junction is $278,809, with home values having increased 7.5% over the past year.
The median home value in Grand Junction is $439,130, with home values having increased 5.2% over the past year.
The median home value in Grand Junction is $388,055, with home values having increased 8.0% over the past year.
The median home value in Grand Junction is $484,264, with home values having increased 6.0% over the past year.
The median home value in Grand Junction is $475,477, with home values having increased 8.5% over the past year.
Hot Pockets In Cooler Markets
Another way to find opportunities is to know your local market very well and look for areas that are up and coming. Look for a fixer-upper in a decent area. Also, search in areas that are adjacent to high-priced areas. For example, the median home price in Denver is currently $484,264, which is currently considered a cool market.
But in nearby Aurora, the price is over $100,000 lower at $388,055. You can piggyback off the amenities and desirability of Denver while taking advantage of a much lower price tag if you’re looking or something a little lower on the price tag totem pole.
Look for soft barriers that can be passed easily, such as a block that is improving, which is next to another block that has already improved. Hard barriers, such as a wide street, a freeway, or a river make it more challenging for an improving neighborhood trend to pass across them. Keeping a close eye on such potential opportunities can be the key to finding an ideal area to invest in.
Understanding Hot CO Markets to Invest in
Finding a hot market or a hot pocket in Colorado or any other part of the country comes from investigating potential growth areas and watching them. Get a feel for the trends and keep your finger on the pulse of prices and changes in certain areas.
One strategy is to buy early when the prices are still low, rent the property for a while, and then sell later, once the market heats up. In Colorado, there are plenty of centers where prices are cool right now and are expected to go up in the near future. Otherwise, you can bank on hotter areas where prices are already hot and are expected to continue increasing over the next few months.
If you are in the market for a new home or interested in refinancing your current property, be sure to consult with your trusted home mortgage professional.
Reach Out to Sammamish Mortgage
If you’d like to learn more about the home buying process, mortgage rates, mortgage programs, or other related topics, don’t hesitate to reach out to the professionals at Sammamish Mortgage today! Sammamish Mortgage is a family-owned mortgage company with nearly 30 years of experience delivering mortgage loans to customers in WA, OR, CO & ID at competitive interest rates. Contact us to learn more. You can also View Rates, get a Rate Quote, or Apply Now using our new online automated mortgage application system!