Year-over-year home prices in Denver have appreciated at 19.3%. Statewide Colorado has seen homes appreciate at over 18% making it one of the fastest appreciating areas in the country.
Still, I hear people say, “I’ll buy why the prices go down”. This isn’t a bubble. This is high demand for something in short supply. Here’s why:
1. New home construction has lagged behind demand since 2008 (especially in lower price points).
2. Millennials are reaching their prime home buying years which is bringing millions of new home buyers to the market.
3. Investors with deep pockets are seeing opportunities in buying up homes at record numbers.
4. Baby Boomers are skipping their European vacations or annual cruises due to covid and instead looking to buy weekend vacation homes.
5. Rates are at all-time lows making larger prices manageable as compared to higher rents.
I do expect appreciation to slow down next year as rates rise but don’t expect prices to come down anytime soon. In fact, this fall is a great time to buy a house as the frenzy of the recent summer market has cooled down and your odds of getting a house have increased.