Denver Metro Area Real Estate Market Review
January 2022
It’s a New Year, and we’re already keeping an eye on the Real Estate Market in Denver. Coming off of a competitive seller’s market with a consistently low number of listings we’re hoping to see a turn around in 2022. We won’t truly know until the home buying season starts in the spring, but there are certain indications of what this year might look like in the Colorado Housing Market. Let’s look at where 2022 is starting to see what we may predict for the coming year.
DENVER METRO AREA
Real Estate throughout the metro area continued to be a stable sector for the Colorado Economy. Housing prices rose a staggering 16.6%, which is more than double any price increase over the past five years. Analysts state this is in large part due to the low interest rates and struggling economy that pervaded through 2021. This brought the median home value to $525,000, up from $450,000 in 2020. Homes were selling like hotcakes, lingering little more than 4 days on MLS. The most striking factor in last year’s real estate market was the Close-List Price variation. With the amount of buyers on the market, homes sold an average of 3.5% over the price listed!
What does this mean for 2022? It’s hard to say. With the Federal Reserve indicating they want to start fighting the rapid rate of inflation by increasing interest rates, the Real Estate Market could shift dramatically in the second quarter and through the second half of the year. Housing prices will certainly slow down their steady rate of increase. Though houses will probably continue to sell quickly the first half of the year, if interest rates increase sales may slow down. Though this will be good news for buyers, they may find it more difficult to find an affordable home loan with higher interest rates. We’re also continuing to notice supply chain issues in home building supplies, from windows to lumber to plumbing supplies and more. This could put a damper on new builds, home flips, and renovations further stressing the housing market. Time will tell how these effects will change the statistics from 2021.
BOULDER COUNTY
Much like the rest of the Denver Metro Area, Boulder County saw strong increases in the housing market. Prices rose around 16%, bringing the median price to just under $736,000. Most of this growth occurred in the first three quarters of 2021. The luxury market regained its health earlier in the year, but stabilized to a new normal in the last few months. As the competition for single-family homes rose through the year we saw condominiums and townhomes start to pick up the pace as well. In 2020, condos and other attached dwellings lagged behind in overall increase of prices, but 2021 saw that shift. This shows how competitive Boulder is – which we already knew. With the prices of homes in Boulder the median time on MLS is 33 days, which is quite a difference from the rest of the Denver Metro Area.
What do we expect in 2022 for Boulder County? If interest rates do increase, Boulder’s real estate market may stall out more than the rest of the Denver Metro Area. We notice that when the larger real estate market slows down, Boulder takes the hit the hardest. The luxury market tanks and competition in town gets even hotter. There will probably be fewer homes listed in Boulder, and the condominiums and townhomes will drive the focus.
LONGMONT
Our hometown, Longmont, outpaced most of the rest of the Denver Metro Area this year. Median home prices rose about 18% over last year, bringing the median price to just under $544,000. This increase is probably due to Longmont’s proximity to highly desirable locations: Boulder, Fort Collins, and Denver. Surprisingly, though, houses stayed on MLS a timespan more in-line with Boulder than the rest of the Denver area – an average of 30 days! Much like the rest of the Metro Area, houses sold for more than the price listed. Sale prices were, on average, 2% over asking price.
What are we looking for in Longmont this year? I anticipate more of the same in town. There are a lot of new builds in Longmont; apartments, condos, and townhomes. This will undoubtedly affect buying trends in town, but it will also keep average days on MLS higher than the rest of the Metro Area. Prices will continue to rise, and potentially a little faster than the rest of the Denver area. If the Federal Reserve does increase interest rates, a lot of these statistics will stall a bit – in tandem with the rest of Colorado and the nation.
WHAT ARE YOU DOING?
What are you doing in the 2022 Real Estate Market? Are you looking to buy a new home? We would suggest you start now, and try to find your next space before interest rates start to rise. This mentality is making the beginning of 2022 very competitive. That’s alright! Choosing realtors with experience like The Wise Team will help you find the perfect home for you sooner, rather than later.
Are you looking to sell? It may be best to list your home by the end of February to take advantage of buyers able to secure a lower interest rate. Once interest rates rise, there may be fewer buyers able to bid on your property, bids may start coming in lower than your list price, and you may find your home staying on the market longer than expected.
No matter what goals you have in the real estate market this year, get in touch with knowledgeable and experienced real estate agents in your area. If you’re in Longmont, or looking to move to Longmont, make sure to contact us: The Wise Team!
