The Denver Real Estate Market 2020: What’s Changed Since 2019
The Denver Real Estate Market 2020
Here’s what we know: People have been coming to Denver in droves since 2010 and the cost of homes has increased 90 percent in the same time period. For some renters and buyers, Denver simply became unaffordable. Now that COVID-19 has shifted the world around us, and continues to disrupt our lives by the minute, what can we expect in Denver’s real estate market for the rest of 2020?
Should I Buy a House During the Coronavirus Pandemic?
Who is in the driver’s seat?
Typically, inventory calls the shots when determining if a buyer or seller holds the power in a real estate market. For the last decade, the sellers’ grip has been tight. At the end of 2019, the number of Denver homes on the market dwindled to 20 percent less than the end of the previous year. While just 2.2 months’ worth of properties sat—or rather made a temporary appearance—for sale, new build homes in the West showed promise in 2019.
According to the National Association of Home Builders, the West and specifically the Mountain states including Colorado led the nation in new home sales in 2019. But that was then, and this is now. What does the future of real estate look like for Denver?
What Will Happen to Home Prices?
Last year, nearly 85 percent of the 90 metro zip codes had an increase in median home sale price. But, a dip in early 2019 gave insight that home prices may be approaching a summit in the Denver real estate market. The recent events will unfortunately force some Denver homeowners to sell and relocate. This could be good news for qualified buyers, as sellers may be willing to sell a home below market value, especially if they’re relocating to an area with a lower cost of living.
According to Jill Samuels, a real estate professional with over 20 years of experience in the Denver market, the future is bright for buyers in 2020. Says Samuels, sales manager for Highland Development Company, “With all the turmoil that will hit after we experience worldwide recovery, real estate will come back stronger than ever. July through mid-August might be slow, but once the kids are back in school, Denver’s real estate market will come back full-throttle. If one of your goals was to be a “Buyer” in 2020, call your Realtor now and get prepared.”
What Will Denver’s 2020 Rental Market Look Like?
Buyers looking for investment properties are in a great position. The secret is out – Denver is a great place to live. The weather is good, active lifestyles abound, and there are plenty of jobs. Millennials are still moving to Colorado, and they’ll need roofs over their heads.
Interest rates are cheap, rents are still on the rise, the future is bright for buyers looking for rental properties.
Where do first-time homebuyers stand in 2020?
In 2019, one-third of all homebuyers in the Denver Metro Area experienced the real estate process for the first time and 86 percent of them were under the age of 28. But when you are joining the real estate game without parlaying built-up equity from a property sale, it can be tricky to find the dollars needed to make owning a home a reality. The good news for first-timers is that, as mentioned earlier, interest rates are at historic lows. On top of that, first-time homebuyer programs are eager to help get you started.
Consider New-Build Options at West Line Village
Real estate and construction have been deemed essential businesses in Colorado. New homes in communities like Lakewood’s West Line Village are continuing to grow. For qualified buyers, 2020 is a great time to move forward with a real estate investment!
West Line Village is open for business, offering tours both virtually and by appointment. Contact West Line Village now to schedule your tour!