The Current State of Denver Real Estate: June 2022
If you are looking for straight-up housing stats, I’ll provide you with a link at the bottom of this article. If you want to know what’s really going on in the Denver metro area housing market, you have come to the right place. In 2020 through early 2021, inventory and interest rates were low. That put pressure on housing prices and it was definitely a seller’s market. Generally speaking, most properties were receiving a handful of offers and people were bidding $15,000 to $25,000 over asking on your typical $450,000 to $500,000 home.
In late 2021 and through March 31, 2022, the market exploded. We still had low interest rates and inventories, but people and investors were getting desperate to own tangible assets, to off-set inflationary pressures. Up until March 31, 2022, most homes were receiving 75-100 showings and on average 15-20 offers. Instead of offers $15,000+ over asking, now they were receiving 10-15 PERCENT over asking. The sellers were taking advantage of their positions and homebuyers’ frustration levels were increasing.
By April 1st, there were two interest rates hikes in a very short window, along with housing prices that had exploded during the last six months which took most first-time buyers out of the market or at the very least affected their purchasing power. Showings slowed to a half a dozen and offers dwindled to one or two. That was the case for most homes under a $750,000. Homes priced above that, were still quite a bit more competitive, depending on location. Higher income earners had a little more flexibility when it came to monthly payments or were still paying cash as they searched for other ways to invest their money, outside of the stock market.
In the months to come, I see the higher end housing market also starting to be negatively impacted as well as new home builds. If I had to predict it, I see rates continuing to rise. This is going to keep housing prices steady and may actually bring some prices down. Rents too though are still increasing, so if you are in the market for a home, or one of those buyers who had recently given up, you should get back into the game, if you can afford it.
Inventory is still low and the population in the metro area is still increasing, so I don’t expect the housing crash experienced in 2008. The main difference is the equity in the homes now versus then. Lending requirements are still insisting on money down, so it won’t be as easy to just walk away, if prices do start to drop a little. Most homeowners will still have equity in their homes, so if a homeowner does need to move, they should be able to sell, which will help balance the market out a little towards the buyers.
If you are looking to sell, make sure you hire an experienced agent—one who knows the area and understands it’s more than just sticking a sign in the front yard and taking a couple of photos with their phone. That’s where The Tucker Team comes in and can help you navigate this ever-changing market, whether you are looking to buy or sell.
Click here for the most recent Denver Metro Area Housing Stats courtesy of SMDRA.