The Holiday Season Puts a Wrap on a Surprising Year in Denver Real Estate
What is surprising? After the anomaly of the 2020 Denver real estate market, many experts expected a slight cooling of prices and demand. While we saw small pockets in some price points, overall, the market remained vibrant for sellers. South Metro Denver REALTOR® Association (SMDRA) Chair, Barb Riley, noted: “While we typically have a strong spring market with activity cooling slightly in the summer, that wasn’t what we experienced in 2021. Priced correctly, homes are still in multiple-offer situations, with buyers competing for an inventory that doesn’t show signs of turning around, at least for the first quarter of 2022.” New listings in November were the second highest in five years at 3,614 homes.
Prices also continue to rise. The median home price in the Denver Metro area rose 17.2% from 2020 to $539,000. “Until inventory levels increase, home prices will continue to rise,” noted Riley. “What is concerning is the impact low inventory and rising prices has on housing attainability.” SMDRA is participating in discussions with several cities in the Metro to focus on alternative options, including converting some of the empty commercial space into condos and apartments.
Here’s where it could get interesting in the second quarter of 2022. Inflation is high and experts are predicting that we could see anywhere from 2-4 interest hikes from the Treasury. While this could create slightly more inventory, it will create a different challenge for buyers who are on the edge financially. What the economists do agree on is that this is not a housing bubble. There would have to be considerably more inventory to support the theory that we are headed for a repeat of the Great Recession.
The numbers continue to point to now still being a great time to buy or sell. South Metro Denver REALTOR® Association CEO, Melissa Maldonado, advises: “Rely on the expertise of a professional REALTOR®. This market is complicated and changes quickly, so using the services of someone knowledgeable about local market trends is vital.”
About SMDRA: Established in 1945, SMDRA is the second largest local real estate association in Colorado serving over 5,200 REALTOR® and business industry partners throughout the Denver metro area.
Members who hold the title REALTOR® are licensed real estate professionals who choose to voluntarily subscribe to the National Association of REALTORS® strict Code of Ethics that goes above and beyond license law. The word REALTOR® is a registered trademark of the National Association of REALTORS® and can only be used by members of a local, state and national association of REALTORS®.
From: South Metro Denver REALTOR® Association
Contact: Melissa Maldonado, CEO