If you’re a Denver home inspector, or real estate agent, you’ve probably been busy. Denver was one of the hottest housing markets in 2018. But will this trend continue in 2019?
What can you expect, given recent market turbulence and rising federal interest rates? Let’s take a look at the Denver housing market now.
Home Prices Continue To Rise In The Denver Area
Currently, the median home value in the Denver area is $424,000, according to Zillow. Home prices have risen 8% in 2018, driven by a strong economy and younger buyers who are looking to purchase their first homes – as well as record-low interest rates on mortgages.
The housing market also seems quite healthy, with Denver having a much lower rate of foreclosures than the national average – at 0.3% of homes, compared to the national average of 1.2%.
Denver also has a very low unemployment rate of only 2.4%, which is much lower than the national average of 4%, which indicates a strong economy and plentiful job opportunities for people across the entire income scale.
The recent low point of property values in Denver was in the middle of 2011, when the average home sale was for about $208,000. Since then, the price of homes in the area has more than doubled – leading some to wonder if this type of real-estate growth is truly sustainable.
Real Estate Values Will Likely Continue To Climb In 2019 In Denver
The fundamentals of the real estate market in Denver are strong, and home prices are rising – but not high enough to push out most first-time buyers. We believe there is still plenty of “head room” in the market, so to speak, and that prices will continue to rise.
Currently, Zillow is predicting that home values will rise by 7.3% in 2019, and Realtor.com predicts a 6.8% increase in home values in Denver.
These rates seem a bit optimistic, but are in line with past growth. However, if prices continue to rise, the combination of higher mortgage rate and costlier homes could make it more difficult to sell some higher-priced properties.
Barring any unforeseen events like a serious market crash or a recession, we expect that home prices will continue to rise, but that growth will likely be somewhat slower than homeowners have experienced in the last few years, as the market approaches a state of equilibrium.
Know If Denver Is The Right Market For You!
Denver is a great place to live – and though the cost of housing has been increasing, it’s still generally affordable for many people across the entire income scale. So don’t wait – start looking at homes and get a home inspection in Denver now.
This is the perfect time to invest in a new home or property, and take advantage of the strong fundamentals of the market. Scott Home Inspection has a dedicated team of Denver home inspectors ready to help with your inspection needs once you have a home under contract. For more information check out our Denver page.