As the capital of Colorado, Denver is a huge city and the housing market is always changing. People are currently coming to this city in large numbers because Denver has a large job market offering many different careers in different fields so there is something for everyone.
Although the housing costs are cheaper than some of the other markets in the US, the current housing price is currently on the rise so people can expect to pay a higher amount of money whether they are buying or renting.
The good news is that there are still some affordable areas of the city where you can look for better rental and mortgage rates. These houses may need a kitchen designer in Denver to come out and renovate the space.
This guide will cover the current market trends so you can see what to expect whether you are a seller or a buyer.
Current Housing Costs in Denver
We are talking about Denver, there are 11 different counties you can look at for housing including Park, Jefferson, Gilpin, Elbert, Douglas, Denver, Clear Creek, Broomfield, Boulder, Arapahoe, and Adams.
All these counties are part of Denver although not all of them are part of the Denver metro area.
Homes in the Denver metro area will always cost more as this is where most people want to live and it has the most amount of amenities and conveniences.
However, there are many real estate agents saying that people are offering price reductions in neighborhoods in good areas because they are trying to attract new buyers.
There are also currently a ton of current listings so some agents and owners are trying to lower their prices to bring in more buyers and hopefully sell their properties.
At the end of September 2022, there were less than 8,000 places listed for sale where the number is usually closer to 16,000 so as you can see the number was reduced by half.
There were just over 4,000 closed homes and more than 50% of these homes experienced a price drop before they were bought.
Forecast for Denver Housing Costs
The Denver Housing market used to be said to be a sellers' market because most of the prices and incentives were more focused on sellers than buyers. However, the market is slowly becoming more neutral as buyers find that the market is friendly for them to buy new homes and condos.
However, with more and more people coming to Denver to live and work, there are fewer homes on the market. This means owners will have to decrease their prices because there is less competition.
Homes are currently staying on the market for much longer than normal as well. This goes more for luxury homes that usually have a high selling value.
Homes in the mid-range values that have more competition are seeing fewer reductions as people are more able to buy homes like these as they are well-priced family homes.
Should I Buy a Home in Denver?
This depends on the home you want and if you plan to move to Denver or not. For homes priced less than $500,000, it can be a less-than-ideal time to buy because many people are looking at homes in this price range so the prices are higher than normal and there is a lot of competition for paying a down payment and securing a mortgage.
It can be hard to find a good home below the listing price so you should expect to pay the price listed without a reduction.
When to Avoid Buying a Home in Denver
Right now, the homes with the most price reductions are those priced at $500,000 or more. Luxury homes are expected to keep experiencing big price reductions so for those who want to buy a high-end home for a good price, you might want to wait for another few months to see if you can get an even bigger deal on the luxury home that you have your eyes on.
Selling Homes in Denver
Although buyers might be concerned about whether to buy a home or not, sellers are also concerned about whether it’s a good time to sell their house or if they should put it on hold.
Since inventory right now for homes is low and listing prices are low, it could be a good time to sell your home but you first need to see the buying price. If your home is valued at over $500,000, it might be best to wait as these homes are losing pricing power and you might not be able to get back what you paid for it.
If you want to sell your home, you will have to make the pricing conservative so that it attracts more buyers and can bring in a lot of attention. If you ask for below the listing price, people might offer you a higher price because they want to beat the competition and move in as soon as possible.
Keep in mind since inventory is currently high, buyers have a lot of options which means they can refuse your home and look for options that work better for them.
People from outside of Denver are more likely to offer a higher purchasing price as they are coming from out of town and want to move to a new area. For people within Denver that are just looking to move though, they can be competitive and try to look for the best pricing possible.
If you want to make your home more appealing, you might want to consider doing some remodeling or new designs to make your home more attractive to buyers.
The Bottom Line
Housing costs in Denver are still moderate but they are on the rise as more people move to the area. Most homes are priced between $300,000 and $500,000. However, there are luxury homes available as well as lower-end homes outside of the metro area.
Whether you are planning to buy or sell soon, you should keep up with market trends and ensure your prices are competitive.
