Denver Housing Market 2022: Prices, Trends & Forecast
Denver housing prices have shown a similar trend as the rest of the nation over the last two years. How are they doing now? What Denver housing market trends should you keep an eye on, and what does the future of the Denver housing market look like? Find out in this complete article about the Denver housing market prices, trends, and forecasts.
Denver Housing Market Prices
The prices in the Denver housing market continue to climb. All housing types saw an increase of almost 9% year over year. The median home price on the Denver housing market is $577, 612.
The median sale price for houses that fell into the category for single family houses has seen an increase of 8.1%. The median price for a single family home is now $637, 550.
Townhouses saw a significantly more significant price increase. The median price of townhouses is now$668,000, which is an increase of almost 20% year over year.
Condos and co-ops saw the lowest price increase. Homes in this category have a median price of $372,500, an increase of 4.8% year over year.
According to a report released by the Denver Association of Realtors, September 2022 saw the highest prices in the Denver housing market in history.
Denver Housing Market Trends
As prices continue to climb, fewer houses are being bought. The number of houses bought decreased by approximately 25% year over year. According to Redfin, houses spend an average of 18 days on the market, an 11-day increase compared to last year.
Single family homes saw a decrease in sales of about 28%. They spend an average of 17 days on the market, for an increase of 11 days year over year.
Townhouses saw a slight decrease in sales. Of all the homes sold, only 201 fell into the townhouses category. That’s a decrease of approximately 23%. On average, townhouses spent 18 days on the market, an increase of 12 days year over year.
Condos and co-ops saw a decrease in sales of almost 20%. Slightly over 200 homes sold on the market fell into this category. On average, condos and co-ops spend a median number of 20 days on the market, an increase of eight days year over year.
More homes have price drops this year compared to last year. Approximately 50% of homes sold were housing with price drops.
However, the market is still considered competitive. Almost 22% of homes sold were sold above the list price, which usually means they had multiple offers.
Parts of the housing market are starting to see a balanced supply. Homes priced in the lower ranges of below $200,000 and those above $1 million are seeing housing supplies closer to 3 months. It takes a 6 month supply for a housing market to become a balanced market, and the Denver housing market is working towards that.
This is due to man buyers shying away from the market due to economic concerns, rate increases, and higher inflation. It makes many families cautious when it comes to buying a house.
That is why we see the trends in the market that we do. Houses will continue to increase in price until the housing supply is large enough to be considered a balanced market. However, as the prices increase, more people are straying away from buying. This results in the housing supply slowly increasing.
Another trend to pay attention to is foreclosure statistics. According to this article, more homes have been foreclosed on in the Denver housing market than in previous years. Nationwide, foreclosure rates saw an increase of 139%. This is partially because protections are in place to prevent foreclosures during the pandemic but also due to economic conditions and rising rates.
Denver Housing Market Forecast
The trends that we see today will continue throughout the following year. As the economic situation in the country remains uncertain and rates continue to increase, many people will stay away from the housing market.
This will result in the housing supply slowly increasing. It will increase further, resulting in prices coming back down.
Although prices have drastically increased over the past year, Zillow forecasts the market will finally cool off. According to Zillow, homes will only appreciate about .5% over the next year.
The Denver housing market will continue to be a seller’s market over the next year, but it shows signs of cooling off. Prices will continue to increase, but this will help the high-demand market become more balanced. As prices increase, more people will begin to back away from the market, slowly increasing the housing supply. If you’re having a hard time selling your house, give us a call today. We buy houses in the Denver area!
As this trend continues, the housing supply will become more balanced, giving buyers more power at the negotiating table. However, remember that it could take years for the entire Denver housing market to become balanced.
Right now, real estate in the Denver housing market continues to appreciate. This housing market has proven to be a solid investment for years and will continue to be. That makes it an excellent idea for investors.
Sellers will face a downturn in the long run and find it harder to sell than in previous years. If you need to sell your home fast, it’s best to do it sooner rather than later. Working with a cash buyer in the area is a great way to sell your home quickly. Check out this page to find a cash buyer in the Denver area today! However, the market will continue to be a seller’s market for some time.
Buyers are backing away from the market and for a good reason. The rising prices and mortgage rates make the market seem unstable. If you have to buy, it’s not a bad time, but it’s not the best time for buyers either. Those feeling cautious about the market should make sure that they are financially stable and wait a bit for the market to balance out.