Where Denver's real estate market stands entering 2022 selling season
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Illustration: Brendan Lynch/Axios
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.