Where Denver's real estate market stands entering 2022 selling season
The Denver metro's real estate market is one of the most compelling in the nation, and this year will prove telling about its future direction.
State of play: Just as the market thaws from its winter slumber, buyers and sellers will find the region sits at a confluence of trends that make this a volatile moment.
- Home prices are soaring, but homeowners are seeing big equity increases.
- The Denver area is one of the most unaffordable, but it's not necessarily on track to be the next San Francisco.
- And the lack of inventory is running up against rising interest rates.
What they're saying: "With the continued demand and lack of inventory, prices will increase and lead to another year of double-digit appreciation," predicted real estate agent Andrew Abrams in the metro realtors' latest trends report.
The big picture: Housing is a significant driver of inflation in Colorado, increasing 5% in the Denver metro, a new economic report states.
- And it's expected to continue contributing to the rise as strong demand persists in the next two years.
By the numbers: Colorado home prices increased an average of 20% in 2021, exceeding national rates.
- The fastest appreciation is visible in Pueblo (24%), Colorado Springs (22%) and Grand Junction (22%), as people look for alternatives to the expense of the Denver metro.
What to watch: A decade of double-digit growth in home values is expected to slow as homebuilding increases and supply chains right themselves.
- Housing permits in the Denver metro grew 16% in 2021, according to census figures — the highest rate in five years — bringing more supply to the market.
The bottom line: "People from around the country continue to choose Colorado as a place to live," Michael Gifford, president of AGC Colorado, a trade group representing general contractors, told the Denver Post.
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