2016 Denver Real Estate Predictions
Denver is one of the most interesting real estate markets not only in Colorado, but in the whole United States. The average home in Denver over 2015 jumped up in price by 8%, leaving many questioning if 2016 will be just more of the same for the Denver market. 2015 left Denver with home appreciation rates rising, strains on housing supply, and an ever increasing supply of cash buyers, thanks to our other “green” industry, should make 2016 one exciting year.
Prediction #1: Home Appreciation Rates Will Level Out
Denver has seen crazy inflation in home prices over 2015, reaching a record breaking $407,000 average! But Denver has already started to see a slow down, and the market should correct itself over 2016. Though the drop shouldn’t be as intense as the 2006/2007 bubble, they should at the least return to historically normal levels.
Prediction #2: Home Sales Will Rise…a Bit
Last year we only saw a 1% increase in the amount of homes sold, mostly because the inventory was so small there were no houses to buy. So that supply and demand rose the prices in 2015 but the actual number of sales was basically even. Fortunately the numbers for 2016 look to be on the rise, but don’t expect a huge surge. Expect a 3%-4% increase in home sales, but that doesn’t mean you shouldn’t expect a bidding war. Unfortunately that’s not going away anytime soon.
Prediction #3: Condos Are Hot
Believe it or not but 2015 saw the condo market rise more then single-family homes! Condos had an average of 16% in price growth compare to the housing market’s 8%. You usually see the opposite with condos being the first to fall and the last to grow, but Denver’s real estate market is so crazy right now that just about every rule has been thrown out the window. 2016 should see condos continue to rise as working families in Denver aren’t willing to move down to Colorado Springs for cheaper housing.
Prediction #4: Rents are on the Rise
The real estate market kind of acts like a row of domino, and when one is pushed the next is ready to fall. Since the single family housing market won’t catch up with the demand over the next year, many families will be forced to rent instead. This will created the classic supply and demand scenario and landlords will cash in by increasing rents across the city. Though developers around the metro are grabbing as much land as possible to build more apartments, they won’t be ready in time to make a huge dent in 2016.
Prediction #5: Selling Made Easy
There are plenty of stories out and around Denver of an agent listing a home on Friday, and having 6 or more above market offers by Monday. This is the time to cash in on your equity if you want to sell because you’re going to get top dollar if your home is market ready. If not you’ll need to get that home fixed up and listed with an agent, because they’ll have no problem at all getting it sold in t his market.