Are you considering a move to Denver? In todays market It is crucial to understand the truth about moving to Denver. We shall look at Denver’s current housing market and the challenges and opportunities present in Denver. Then, YOU can consider what it means for you as a homebuyer moving forward.
So, are you someone that has been looking to move to Denver for the past few years? I want to give you a lowdown on what’s going on. It will help you make the right choice for yourself. I am Ryan Lange, a licensed realtor here in the state of Colorado. I moved from New Jersey in 2020, and whished I had someone to give me the lowdown of this city. Now it is my goal to serve you as your personal Denver Agent.
Now, let’s explore the current Denver housing market trends and the challenges and opportunities.
If you are too busy to read the whole article, check out our YouTube video below for a summary of the truth about moving to Denver, and the current housing market analysis.
Denver’s Current Housing Market Trends
1. Low Inventory in Denver’s Housing Market
Denver currently has a low level of stock in its housing market. Just like the majority of the entire United States. Therefore, there are limited homes for you to chose from, and the demand exceeds the supply. It can create a rough time for interested purchasers in the housing market.
The low inventory can be explained by the Golden Handcuff Phenomenon. This phenomenon is when sellers, who own a home at a low interest rate (2.5-4%) cannot sell their home and move into something larger. They can’t due this because they would then have to jump into the current interest rate of 7.6% or higher.
Therefore there are less people selling house, thus less homes for you to buy. It is an extremally interesting climate that we have not seen in almost 30 years.
Finding an ideal home may cause problems for those who search for their dream houses. For example, in neighborhoods such as Highlands or Capitol Hill, the market is a battlefield with little time for deliberating.
However, this past month we have noticed it coming up. Homes remain on the MLS for about fourteen days. Our inventory is about a little over two months, which also is extremely low.
Therefore, in your search for a house, it is hardly a rich choice. Maybe you need to settle for a three bedroom instead of a four, or you can consider a one-car garage compared to a two-car garage.
2. Denver homes are going above the listing price
The other unfortunate truth about moving to Denver is that some houses attract offers above the asking price. For example, I made an offer on a house across the road. It was an investment deal that fell a little less than listed one.
The next day, the listing agent told me some other interested parties offered higher bids above the listing. I was indeed surprised! Even with high interest rates there are still competing offers
For example, at Washington Park, a bungalow for $500,000 might attract numerous offers. But, it could finally sell at $520,000. Hence, buyers must be willing to bargain well and remain within a particular budget range. That’s the challenge with bidding wars.
Now, not every home sale will go over listing price. However, if the house is in a good school district with low crime there is a good chance. Therefore, homes outside such comfortable districts do not reach the initial sale price.
3. There are More People Still Moving to Denver:
Furthermore, the house I told you I offered on could have been slightly underpriced in the listing prices. Do not assume that you must bid above the listing price for a house. I am only presenting you with the reality of some decent places.
The housing issue market in Denver is not a recurrence of the 2021 episode. Then, some homes sold for $40,000 above the listing price within 48hrs.
The arrival of newcomers into Denver is due to the perception of the city as an active and flourishing place, which it is. The arrival of firms associated with high-tech industries, such as TechCo, is attracting qualified personnel to the Mile City. Such an influx only makes things worse for the housing market. It’s worse in high-ranking school districts like Cherry Creek School District.
Many companies are now requiring worker to return to the office. Those who have not been required to do can now solidify that they will work remote indefinitely. This gives them the confidence and option to finally make the move to the Mile High City.
4. Unchanging Interest Rates:
Denver’s stable Interest Rates. Interest rates stay constant as the U.S. economy is healthy. It is better to fix a mortgage rate at current levels. You could get better results than waiting till the rates skyrocket. Someone could purchase a home worth $450,000 at 4.5% rather than wait until $500k at 5-5%
Interest rates soared and people began borrowing less. The low interest rates resulted in less willingness to sell homes (The Golden Handcuff). The demand becomes higher than the supply and causes the real estate market to remain competitive.
5. Rising Taxes and Insurance Costs:
The fifth truth about moving to Denver is that the cost of living in Denver keep rising. The increase includes taxes and insurance, both car and homeowners is just insane. With rising home valuations, and assessments, the government and insurance companies can charge more. This is a good example of why the fed is trying to cool spending to stop this swift rise in prices.
The city is experiencing record-breaking increases in property taxes, impacting homeowners and potential buyers alike. For instance, annual property taxes on a $600,000 home can increase significantly over a few years. It further affects the overall cost of living in Denver.
I have heared other realtors say, “Oh yeah, just refinance when the time comes.” NEWS FLASH: You’re not going to be refinancing in a couple of months. Let’s get real, China’s printing trillions of dollars. The market is still fantastic in the US. Our economy is still great! Until something gets seriously broken, the rates will remain high.
It is vital for home owners to understand the financial implications of interest rates and buying a home. It also essential to have a long-term financial strategy.
6. Worsening Traffic Conditions:
Denver’s traffic congestion on the I-25 belt and the Greater Denver Metropolitan Area is increasing. And that’s due to the increase in resident population and tourists.
Going on a mountain trip over the weekends for skiing is no longer walk in the park. On weekends, it will take a few hours before heading towards famous ski resorts such as Vail. So, you better plan on waking up at 3am to beat the traffic for a Saturday trip to the mountains.
7. Overcrowded Hiking Trails::
Hiking trails and other outdoor recreation areas used to be peaceful and quiet. You could enjoy some solitude. When I moved here in 2020, we had a smaller population on the trails I usually run on Saturdays.
Now, almost every fourteener is going to have a good amount of folks to pass. While it is good that people are getting out and exploring what Denver has to offer, but the congestion is getting ridiculous.
Currently, everyone and their mother is hitting the front range trails on the weekend. They are the easy ones to reach or the weekend choice. For now, I am glad to get up and go for those new peak trails, new hikes and new trails.
What You Should Do If You’re Looking to Buy a Home
What to do if you’re buying a home: For those determined to buy in Denver’s competitive market, two strategies are essential:
Marry the Home, Date the Rate, and Be Willing to Settle:
There is no better time to look at the housing market Denver opportunities. Firstly, marry the home and date the rate. In other words, it is more important for homeowners to focus on the property than the prevailing interest rates. We expect rates to hold steady for the next few years, but eventually they will come down. If they don’t than you got in before they remained even higher.
However, locating the appropriate house should be the main focus. Additionally, be prepared to compromise. If you are in the market for a home in Denver, do be prepared to compromise on some features. There is no guarantee that you will have everything you want. Be ready to act instead of being concerned about perfection.
Settle for a Home That Isn’t EXACTLY What You Want:
The Denver housing market trends or competitive rates bring another reality check. One must accept the reality of settling in a house that is NOT EXACT but still good enough. The flexibility may aid in getting a house within your means that fulfills your demands.
The current housing market in Denver option demands flexibility. You might not find a house that ticks all your boxes, but you can still make an intelligent investment by compromising on some features. Instead of holding out for your dream home, consider a property close to what you want. It may not be an exact match, but it’s a practical approach to becoming a homeowner in Denver’s competitive real estate landscape.
Perhaps it’s not the dream home you initially imagined. But you can update and personalize it over time. For example, John was searching for a home with a spacious backyard for his gardening passion. He found a house with a smaller yard, but the interior was perfect for his family. John decided to “settle” for the house, knowing that he could enhance the garden in the future.
Final Thoughts on the Truth About Moving to Denver
So, there you have it; the truth about moving to Denver. Housing market Denver challenges may seem much. But there’s still a lot of opportunities. If you qualify to buy a home, you should buy one now.
Also, Denver’s current housing market trends will change with time. We are going to see a dip in the market eventually. Do not get scared by these rates that won’t last for the next 20 years. The economy goes through ebbs and flows. Something in the economy is going to break, eventually.
However, if any of the above does not occur soon, that’s the reality. Are you going to live in an apartment your entire life? Is that what you want to do? If it is, good for you. You’re happy. But if you truly want to be a homeowner, you have to make with the time and play with the cards you have in front of you.
The truth about moving to Denver is that it offers incredible opportunities. But, it comes with challenges that demand adaptability. Low inventory, rising home prices, and other market realities require savvy decision-making.
Also, you should know more about Denver housing market trends. Embracing the concept of marrying the home and dating the rate will help you navigate these challenges. You can make a wise investment in the Mile-High City’s vibrant future. Denver remains an attractive destination for those who see beyond the current housing complexities.
Remember, you should balance the interest rate with the quest for your ideal home. Consider homes that may require a touch of creativity and improvement. Understanding these truths will help you makes an informed decision with homeownership.
Consult a Realtor:
So, are you looking to buy, sell, or invest in Denver’s current housing market? Or just looking to get to know the Denver area more. Hit me up right here. Let’s go look at some homes, grab some beers or coffee, and talk about your goals as a homeowner. We can tour choice real estate properties or visit affordable Denver suburbs in Denver. It’s always your Denver real estate agent, Ryan Lang.
As a realtor, I tailor my advice to meet your specific needs. Even if you’re a first-time or seasoned investor, trust the Denver agent with your home-buy tour. I guide you in making well-informed decisions and explore Denver’s hidden gems. That helps you find the right property in line with your goals.
Disclaimer: This article does not serve as financial advice. Please consult a financial advisor about the Denver housing market forecast. But you can speak with us for a real estate professional or personalized guidance.
How Long Does It Take to Sell a Home in Colorado?
The time it takes to sell a home in Colorado varies depending on market conditions and other factors like the price and condition of your home. It may only take a few weeks in a strong market, but it could take several months in a slow market.
What are the Benefits of Being a First-Time Home Seller in Colorado?
As a first-time home seller in Colorado, you may enjoy some advantages, including:
Less emotional attachment: As a first-time seller, you might have little feelings about the property, making it easier to negotiate and decide based on market conditions.
Greater negotiating power: If your property is in high demand, you may be better positioned to negotiate a higher price.
No previous sales history: Potential buyers might see you as more flexible and open to negotiation if you have not sold a property before.
No past real estate mistakes: As a first-time seller, you likely haven’t made any errors in previous real estate transactions, giving you a clean slate and more peace of mind.
Opportunity to learn: Selling your first home can be a learning experience, allowing you to gain knowledge and insights into the Colorado real estate market and the home-selling process.
What Should I Consider Before Selling My Colorado Home?
Before selling your Colorado home, consider the following questions:
What is your motivation for selling? – Understanding your reasons can help you make informed decisions and set realistic expectations.
What is your desired selling price? – To establish a target price, consider current market conditions and recent sales of similar homes in your area.
Are you willing to make repairs or renovations? – Consider the improvements you may need to make to attract potential buyers and increase your home’s value.
How will you market your home? – Determine the most effective methods for advertising and promoting your property, such as hiring a Colorado real estate agent, listing your home online, or hosting open houses.
What terms of sale are you willing to accept? – Consider factors like the closing date, contingencies, and the buyer’s down payment amount.
How do you plan to handle negotiations and closing? – Decide whether a real estate agent or a lawyer will handle the negotiations and closing, and be aware of the fees and expenses involved.
Are you familiar with Colorado’s real estate laws and regulations? – Familiarize yourself with local real estate laws and regulations, such as tax rules, zoning laws, and other legal requirements.
By considering these questions and being well-informed, you can make selling your Colorado home smoother and more successful.