What’s Happening With Real Estate in Denver?
You may have noticed real estate prices in Denver skyrocketing, here’s why.
The COVID-19 pandemic has adversely affected many businesses and industries across the country. But one that has remained resilient and is even thriving is real estate. In an article for Fortune, Daria Solevieva explained that millions of people are continuing their search for the perfect home and making purchases despite other economic conditions.
This has caused home prices to steadily climb across the country, but Denver, Colorado stands out in particular. Let’s explore more about what’s happening in the local market to understand what it means for potential buyers.
Home prices are reaching a record high
The Denver Metro area is a hotspot for real estate. According to Norada Real Estate Investments, the median closing price on a single-family home reached $519,900 in Oct. 2020. If this number doesn’t seem high, it’s actually a 1.9% increase from September and a 14.3% increase over the past year.
The average closing price is even higher, at $625,100, an 18% increase over the past year. And it’s not just single-family home prices that are increasing. The average price of a multi-family home, condo or townhouse was also up 8% year over year to $385,367.
As you can see, the market in Denver is extremely competitive, even more than the conditions in the rest of the country. If you’re hoping to purchase a home in the Denver area, keep this in mind.
Why are home prices rising?
As fun as Denver is, the increase in home prices is only in part due to prospective buyers from outside the city. Rather, the COVID-19 pandemic has created a perfect storm that caused prices to drastically increase in a short period of time. Reporting for CNBC, Diana Olick explained that many homeowners are reluctant to sell right now. This is understandable, as moving during a pandemic poses new problems and delays. However, this has caused an extreme shortage of supply in the local real estate market.
At the same time, demand is incredibly high. Homebuyers from larger cities are drawn to the metro area and an opportunity to purchase a home with more space as they work remotely. Furthermore, record-low mortgage rates are making purchasing a home even more attractive for new and veteran buyers alike. These factors have created a frenzied market in the city, but it shouldn’t deter hopeful homebuyers.
Home prices in Denver are rising for a number of reasons.
You understand the market, so now what?
Seeing how competitive the real estate market is in Denver right now may make it seem like a city to avoid, but if you have your heart set on finding your dream home here it’s very possible. As a buyer, you must understand that while market prices are high, finding a home is still possible and locking in a low mortgage rate can be a reality if you’re willing to act fast.
And when it comes time to find a home loan that works for you, Vectra Bank is here to help. As experts in the Rocky Mountain Region, we understand more than anyone what the local real estate market is like and have the loans to help. Contact your local Vectra Bank Representative today for more information on our home loan options*.
*Credit approval required. Terms and conditions apply. See banker for details. Equal Housing Lender. NMLS #467014