Denver is hands down a great place to call home. However, if you are looking to buy property there, you may face a number of challenges. Not only is the housing stock limited in Denver, as is the case nationally, but property prices have skyrocketed in recent years, making it more difficult for buyers on a budget to get into the market.
If you’ve been trying to buy a home in Denver for a long time, you might be wondering when the market will cool off. While we can’t say for sure when this will happen, there is reason to believe that home prices are a long way from going down.
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Where is the Denver housing market
House prices have skyrocketed nationally over the past year as low inventory levels and competitive mortgage rates have spurred buyer demand. But Denver property prices have been rising for years, even before mortgage rates dropped and the housing stock fell so dramatically.
In February 2016, the average home price in Denver was $ 325,000
Housing Tides, an EnergyLogic company. A year later, home prices rose to $ 355,000. In fact, Denver home values have grown steadily over the past five years, and the average home price was $ 532,000 in May 2021. While home prices have also risen on a national level, Denver has seen its price jump more sharply in the past five years.
Meanwhile, as of May 2021, Denver only had a 0.4-month supply of available homes in the market. At the national level, the US housing market had 1.13 months of available housing on offer. To be clear, even that isn’t a huge selection. It usually takes a good 4 to 5 months to create a balanced housing market where neither buyers nor sellers have the upper hand.
However, with Denver’s inventory being so small, home demand is likely to remain high. This, combined with steadily rising prices, suggests that the Denver housing market will not cool down anytime soon.
Here’s another reason Denver house prices can stay high for a while: With the pandemic, many companies are allowing their employees to work remotely on a long-term basis. As a result, more people can choose to move to Denver and enjoy amenities like nearby hiking trails and outdoor sports, not to mention the city’s vibrant arts and dining scene. This, too, could fuel demand, although not everyone who decides to move to Denver will buy a home there, and many new transplants may choose to rent it.
How To Buy A Home In Denver Den
If you are looking to buy your own Denver apartment, it is best to save a large enough down payment to make it happen. You’ll also want to do your part to increase your chances of getting a mortgage by improving your creditworthiness and keeping your current debt to a minimum.
It’s also worth researching different Denver neighborhoods and see if some are cheaper than others. With that in mind, consider the Denver suburbs if you can’t swing a house in town by yourself. Moving to the suburbs could give you the best of both worlds – more space to spread out and access to a variety of great restaurants and activities.
There is a good chance that once national demand from buyers wears off, property values will stop rising and begin to plateau before going down a bit. But should we expect Denver property prices to return to 2016 levels soon? Not at all. The city’s housing market was strong before the recent boom in buyer demand and there is no reason to believe it will last for many years.