Despite the COVID-19 pandemic taking a toll on the national economy, the Denver housing market is still hot! According to the latest report from Norada Real Estate Investments, there have been record-breaking home sales during the summer months of 2020, with a 12% increase year-over-year. However, as our country continues to navigate the ongoing (and often unexpected) hurdles of the pandemic, it remains unclear the short- and long-term impact on the housing market.
What Keeps People Buying in Denver?
Just as we saw in 2019, Denver remains the second-best place to live, as ranked by U.S. News and World Report. Its pre-pandemic job market has held steady over the past year, and people are continually drawn to Denver’s high-quality education, low crime rates, and overall cost of living. As it turns out, the entire state is an increasingly popular place to live, as Denver shares the top five spots with Fort Collins, Colorado Springs, and Boulder.
Current Housing Market Trends in Denver
According to Zillow, the current home value index is $466,601, which is up 3.7% from last year. On top of that, there are fewer homes on the market – and the ones that are on the market go quick!
The number of homes for sale in September reached an all-time low, creating “the toughest market to buy a house in Denver Metro’s history.” That, along with homes spending an average of just six days in the MLS, shows just how competitive the market is right now.
On the other hand, Aurora (Denver’s neighboring city) has seen a whopping 6.2% increase in home value from last year but remains significantly more affordable, with the average home value index at $381,190. In housing communities like Copperleaf, you can expect to find exceptional homes starting in the $300,000s and a 7% lower cost of living than Denver.
The takeaway? It’s certainly a seller’s market in Denver right now, and they’re getting higher values for their homes than last year. The data also shows that Denver is becoming a real hot spot for buyers, but there are plenty of options in the area for more affordable prices! What else do these stats tell us? That now is the time to take advantage of record-low mortgage rates!
Looking Ahead to 2021
In 2021, Denver is expected to see a 6.4% increase in home values in the next year. The current forecast for September 2021 shows that the average home will be priced about $496,000, about $30,000 more than 2020’s average. If you’re looking to buy a home in the Denver area — and avoid paying those high prices! — now is the time to start looking for a home.
Interest rates, while they can’t be predicted, have stayed low for quite a while, which leads housing market experts to believe that the current seller’s market and competitive buyer’s market will continue through much of 2021. The biggest area of competition? Properties sold in the “sweet spot”: between $300,000 and $499,999.
Thinking of Buying a Home in Denver in 2021?
Of course, the pandemic, the election, and other unknowns will all have their own impacts on the 2021 Denver housing market. But for now, the market is happy and healthy, and people are finding their dream homes in Denver and the surrounding areas more than ever!
For those who are just starting their search for a single-family home, senior living, or luxury apartment, turn to Copperleaf Community. Sitting just outside of Denver, it’s the perfect place to put down roots confidently — not competitively. Find your perfect home at Copperleaf Community today!