Colorado’s Projected 2018 Real Estate Market Remains HealthyPosted on Dec 10, 2017
Some housing experts pondered whether proposed tax reform would hamper home sales. But Colorado's projected 2018 real estate market remains healthy and robust. Some financial analysts point out that wealthy homeowners will take advantage of tax reform measures that favor landlords by buying rental homes. According to a recent piece by mpamag.com, the overall United States housing market will remain strong through 2018. In fact, experts say the probability of a housing decline within the next two years is only 4 percent, an extremely low possibility. A Housing and Mortgage Market report by Arch Mortgage Insurance showed home prices continue to increase in Colorado and other booming parts of the country. But buyers will likely rush to own homes before higher mortgage rates affect home affordability.
Expecting higher mortgage rates
According to a piece by The Denver Post, home buyers will deal with rising mortgage rates through 2020. Yet, the higher rates will not derail the booming housing market, economists predict. The Post reports that fewer than 28 percent of new construction home buyers paid less than $400,000 in Denver in 2017. Forecasters say rates will increase to about 4.6 percent in 2018 followed by 5 percent in 2019 and 5.3 percent in 2020.
Opting for townhomes and condos
Another trend in Colorado real estate is the interest in townhouses and condos. While most people prefer single-family homes, many millennials choose townhouses as their starter homes. The report showed 30 percent of the new construction in 2017 in Denver was townhouse construction. That's the highest share since 2008.
Other predictions include a slower appreciation of home values. Instead of home values spiking and crashing as they did a decade ago, it's more likely the prices will only gradually increase. As far as tax reform, most experts say reduced tax incentives won't deter most people from buying a home. In fact, tax reform could motivate people with means to buy second homes as investment properties. At Team Lassen, we help aspiring homeowners get into the home of their dreams while interest rates remain at historic lows. For more information about Colorado's projected 2018 real estate market, please contact us.