Are Denver's Home Prices About To Plummet?
1. Denver Home Prices Expected To Rise 10% Next Year
A few months ago, the Denver Post published an article that cited a research firm in Florida, Location Inc., that claimed Denver's home prices would plummet 11% starting in 2019. They presented absolutely no data to support their claims, and when one of my colleagues reached out to them, they still did not provide any data. In short, their claim was based on an in-house algorithm.
In more recent news, Veros Real Estate Solutions, among many others, has predicted that home prices in Denver will RISE another 10.3% in the next year. What is causing our home prices to continue to increase? "Denver...continues to show a tightening of home supplies at around 1.1 months. Combined with an unemployment rate of an extremely low 2.1% and rapid population growth, this is one of the strongest markets in the country. " Home prices are certainly not going to decrease any time soon and possibly not for many years to come. Buyers- try to buy sooner rather than later. As home prices rise, it will only get harder to find a home.
More: Are We In A Bubble?
2. Denver Has The Lowest Delinquency Rate In The Nation
According to Black Knight Financial Services, Colorado has the lowest mortgage delinquency rate in the nation with only 2.1% of mortgages being more than 30 days late. What this means is that people can afford the high home prices in Colorado; if they couldn't our delinquency rate would be much higher.
3. The Summer Real Estate Market
Now that we are in the summer months, the market has actually cooled off a bit. While many buyers are on vacation, sellers have all decided to list their homes for sale all at the same time. The result is that 1) homes sit longer on the market, 2) list price to sale price is down, and 3) price reductions are up. In short, supply is up and demand is down. Frustrated sellers who aren't getting showings or offers means buyers are more likely to get a deal. Expect this to change mid way through August as people get back from vacation and school starts again. If you're looking to buy, now is the time to buy.
More: How To Buy In A Seller's Market
More: The Truth About Zillow
More: How Much Money Do I Need To Buy A House?
Questions or comments? Just let me know! If you knew someone looking to buy or sell a home, I'd love to be the person you refer them to!