Colorado Housing Market One to Watch in 2019
The spotlight will continue to be on the Colorado housing market in 2019.
The calendar now reads 2019, and that means it's a good time to take stock of the year ahead in the Colorado housing market. A mixed 2018 saw highs and lows as the Denver area continued to heat up, while different trends were seen across the state.
Local buying and selling activity is certainly fueling the housing market. But other factors, like the state and national economies, as well as mortgage rates, play a role in what many experts and prognosticators believe will be another strong year for the Colorado home market.
It's not just the competition in the Denver metro area that's grabbing headlines, but also market opportunities in other parts of Colorado. Here's why the state is one to watch in 2019:
Denver up and down in 2018, competition steady
The first six months set a torrid pace for the Denver metro market that the second half of 2018 couldn't meet . In fact, it sagged on the entire year as a whole, with annual home sales measured by the Denver Metro Association of Realtors falling 5.5 percent compared to 2017. December marked a particularly harsh comedown for 2018, as home sales dipped 18 percent month to month and 23 percent from December 2017.
However, sales volume hit a new record for the 11 counties in the Denver metro market (Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park). The $26.5 billion generated in 2018 was nearly 2.5 percent higher than 2017 volume. However, listings were active for 41 days in December, compared to 19 in June. This indicates sellers are having to hold out longer, as buyers gained back some purchasing power.
Denver is already the most competitive market , as measured by LendingTree. In the three criteria used to measure competitiveness, Denver came up:
- First in share of buyers shopped around for a zmortgage (67 percent).
- Ninth for share of buyers with prime credit (56 percent).
- Ninth in average down payment (16 percent).
Colorado Springs gains national attention
It's not just housing in Denver that's become the topic of conversation locally and nationally, but also Colorado Springs. The area entered the conversation after Trulia ranked it as its No. 1 region to watch in 2019 . What factored into that decision? The top 100 U.S. metro markets were judged on job growth, vacancy rates, starter-home affordability, ratio of inbound searches on Trulia (which signals interest to move in) and share of population under 35, which is a gauge of potential for first-time homebuyers. Colorado Springs performed strong enough in all the categories to earn the top ranking.
Trulia even identified Southeast Colorado Springs as the hottest neighborhood within the larger market. That hyperlocal aspect of real estate was reflected in the predictions for various local markets offered by Colorado Association of Realtors. While the state's economy is predicted to see moderate performance in 2019 , finding a home in the competitive Coloradan housing markets could become even more competitive. Talk to Vectra Bank today for any type of help you need with a mortgage, whether guidance, resources or the loan itself.