For two years in a row, Denver has topped the U.S. News & World Report’s ‘Best Places to Live’ list. In 2016, Denver ranked number one, and in 2017, the metro area cheerfully accepted second place–based on the beautiful environment, low unemployment rate of just 3.2 percent and a healthy population growth of 6.3 percent.
But anyone who’s lived in the Denver Metro can tell you that Denver and the surrounding areas rank #1 in the hearts of all of the state’s residents.
So, what’s ahead for next year? To get a feel for the Denver housing market forecast in 2018, let’s look at some numbers and trends from this year.
The 2017 Housing Market Performance
The Denver Metro Association of REALTORS® Market Trends Committee chairman says the pace of homes being sold in 2017 has been continually slowing since summer time. However, even as potential buyers watch prices and sales numbers fall, home prices are still up 7.9 percent over last year.
The Denver Metro Real Estate Market Trends Report for September 2017 also showed an increase in active listings of single-family houses and condos, creating a great market for those looking to purchase. But don’t be fooled. With inventory rising and prices falling, many agents still don’t see this as a burst of the real estate bubble. Instead, this is being seen as a normal decline in sales as the season slows for the winter months.
Another thing to note is that the rate of new-home builds is steadily on the rise, up 8 percent compared to this time in 2016–and that’s on top of the 22 percent rise in new home builds from 2015 to 2016. That accounts for multiple home types including single-family residences, townhomes, duplexes and condos.
Experts attribute this expansion in home types to builders adding affordable housing options for entry-level, first-time buyers as prices continue to rise year over year. But new build homes only make up 10 percent of the home sales market, leaving existing home sales to dominate with nearly 90 percent of the home sales market. Overall, sales of both new build homes and existing homes are steadily rising, but as the need for homes in the Denver Metro area remains strong, the existing home market and new home inventory remains tight.
Buying a Home In Denver in 2018
Housing prices in Denver may be climbing, but a change in momentum may be just around the corner. The average price of a home in the Mile High City was $439,161 in April 2017, a record high since the recession in 2007, according to a report from ABC Denver 7 News.
However, Location, Inc., a geographic research and data mining company, is predicting an average drop in housing prices of 9.3 percent starting in 2019 that will span over the course of 5 years. The last housing downturn was in 2008, and with real estate cycles lasting approximately 10-12 years, a dip in 2019 would follow that trend.
So what does this mean for home purchases in 2018? Higher prices are probably here to stay–for at least another year, which is great news for sellers and real estate professionals. Nonetheless, for those planning to purchase a home in the Denver Metro in a year or more from now, you might be able to take advantage of the predicted dip in listing prices.
Are you ready to make a move? For more information on new homes in the Denver Metro area, contact Copperleaf Community and check out one of our many floor plans from KB Home, Richmond American Homes, and DR Horton Homes. Whether you’re a new family looking for your first home or you’re growing family looking to upgrade to a larger house, let us help you find a home that is the exact fit for your needs!