Denver Real Estate Market Review
February 2022
Change is in the air, and it’s not a change of seasons – at least not yet. With the Federal Reserve’s announcement that they will be increasing interest rates, the real estate market felt a shift in attitude. Both buyers and sellers are paying close attention to interest rates as this will highly affect what happens in the coming months. Will these rates shift the market more into the hands of buyers? Or will sellers find the higher prices and higher rates to their benefit? The close of January, and beginning of February, are giving us some interesting clues to what might happen throughout the year.
Denver Metro Area
In many ways, the Denver Metro Area real estate market looks very similar to last year’s. The shortage of houses available continues to be a woe for buyers. Prices continue to climb. Competition is hot and homes that are listed are still selling very fast. The median price of homes has risen to $540,000, an increase of over 18% from last year. Not only are they selling at higher prices, listings are often selling above asking price by over 2%. Even though all these data points appear to be the course for the past year and a half, there is a shift in how people are buying. Since the Federal Reserve made their big announcement, buyers have added a little more pressure to finding their dream homes before interest rates start to rise. Unfortunately, most banks have already increased their rates in preparation for the Fed rate hikes.
Boulder Area
Boulder feels a little different. Boulder’s real estate market caters to a very different demographic as well. The median sales prices of homes in Boulder is currently $745,000, just about 17% higher than last year at this time. Inventory is extremely low in Boulder, which started February with only 45 listings! This creates great competition for buyers, so if you’re looking in Boulder you need to move fast and come to the table with a great offer. Typically homes in Boulder sell for about 1% over list-price.
Longmont Area
Much like the rest of Boulder County, Longmont is seeing low listings, higher prices, and high competition. February started out with 95 listings throughout Longmont, a very low number compared to previous years at this time. Due to the low number of listings, prices are rising at about 17% over last year. The median sales price of homes currently is $560,000. They’re also selling faster than last year, down to about 25 days on MLS. Proximity to Boulder and I-25 are really driving the competition, and buyers are being competitive. Homes are selling almost 3% over list price! This may seem daunting, but don’t let it deter you from looking for your dream home in Longmont.
Colorado continues to be a hot, competitive, fast moving real estate market. With lower numbers of listings and dramatically higher prices, we would assume the market would slow down. That’s not what we’re noticing. With the threat of higher interest rates buyers are jumping into the market to try and secure loans and their new homes before the market moves out of their price range. When you’re ready to buy in Longmont, get in touch with us – The Wise Team. We’re Longmont’s best realtors. Let’s find your dream home!
