The Current State of Denver Real Estate - August 10, 2024

Well the Denver Metro area housing market struggled through another challenging July. Now, with most schools starting in early August, the month of July is typically one of the slower months of the year. People are trying to get that last family vacation in, prior to getting ready for another semester of school. The statistics above bare that out, with fewer closings, more listings and longer days on market. For the month of July, interest rates stayed pretty steady, as did prices, although the attached properties (condos and townhomes) did see price reductions, as did single family homes that had been sitting on the market for awhile. That seems to replicate the general trend around the country.

With the stock market in flux and concerning job market statistics coming out the first part of August, it will be interesting to see what this month brings. A recent report in Zillow found that in 2020, a $101,365 income was enough to comfortably own a home in Denver. That number has since increased by 70.5%. Today’s homebuyer needs to make $173,000 to afford a home in the Denver area. Monthly mortgage payments have risen sharply since January of 2020 and assuming a 10% down payment, that same report indicates that mortgage payments have increased 85.5% over the last four years to $3,615. Unfortunately, that does NOT include insurance, property taxes or HOA fees, all of which have substantially increased in the Metro area. Across the country, mortgage payments have basically doubled, so the Denver area is far exceeding the national trend.

However, don’t forget that home ownership is one of the best ways to provide long-term financial security. As you build equity and your property's value increases, you create an asset that can be leveraged for future investments or used as collateral for loans. Owning a home is an investment in your future. Unlike renting, where your money goes to your landlord, mortgage payments contribute to your ownership stake in the property. As the last several years have demonstrated, this investment can yield significant returns over time, especially in desirable locations, such as Colorado. Besides building equity, home ownership also provides tax benefits and a built-in protection against inflation.

If you are in the market for a new home, or are interested in selling, please contact one of us at The Tucker Team. We know the market and can provide expert advice as to the recent trends and have the experience to help you purchase the home of your dreams, a savvy investment property or help you get top dollar when selling.