Colorado Real Estate: Buying or Selling Before a Sharp DeclinePosted on Sep 08, 2017
Predicting what will happen in the real estate market is difficult, but forecasters predict a sharp decline in home prices from 2019 to 2022. Most real estate pros recommend buying or selling in the Colorado real estate market this year. From the buying side, it’s smart to lock in at the current prices and begin building wealth as a homeowner. From the selling side, it’s an ideal time because of high demand and low inventory. According to a piece by denverpost.com, the rapid appreciation of home values will likely come to a half for Denver and the Northern Front Range in 2019. Analysis with Location Inc. predict prices will fall 20 percent between 2019 and 2022. Experts blame the reversal on wages that can’t keep up with home prices. If you want to sell a home in Boulder, Denver, Greeley and Fort Collins, work with a reputable real estate agent who helps you profit on price-gains this year and into next year.
A gap in wages
When home prices continue to go up, potential home buyers need the income to support a home purchase. While prices are about 3.5 times higher than income nationally, the rate for northern Colorado is about 4.5 percent.
Variations based on neighborhoods
Although analysts think median home prices will drop 11 percent by 2022 in metro Denver, the exact drops vary greatly by neighborhoods. For example, Location Inc. suggests homes in Denver’s Green Valley Ranch will possibly lose one-third of their value. But people who own homes in Denver’s Sunnyside neighborhood could enjoy a 15 percent appreciation within the next five years due to the location and amenities. When buying real estate in Colorado, focus on hot neighborhoods that will likely withstand a downturn.
Other predictions include dramatic price declines in the Boulder area of 17 percent. Fort Collins could experience a 5.5 percent drop in median values in five years. While metro Denver experiences double-digit price gains, it’s unlikely to continue. At the same time, some historians say home prices continue to increase when interest rates go up. Others think Colorado real estate will experience a high plateau in which prices simply level off at a higher point. Ultimately, buyers need to move on homes this year or next rather than come late to the game.
At Team Lassen, we help buyers interested in moving quickly on Colorado homes for sale. For more tips on Colorado real estate market trends, please contact us.