Denver, Colorado, is known for its breathtaking natural scenery, unique neighborhoods, and flourishing cultural scene. Over 700,000 people call this capital city their home, as it is one of the best places to live in Colorado.
In December of 2021, the median sale price in Denver, Colorado, was $540,000. The real estate market in Mile High City continued to stay competitive into the new year, with homes spending an average of nine days on the market. This competition shows itself in Denver's neighborhoods from Washington Park to The Highlands. For example, Washington Park real estate for sale spent only an average of seven days on the market in 2021. Additionally, a Highlands realtor may advise buyers to make an offer quickly on any home in the growing neighborhood, as the real estate only stays on the market for an average of 12 days.
If you aim to make Denver your home in 2022, you may wonder what comes next. Let's find out by discovering what experts predict for Denver, Colorado, real estate during this coming year.
Low supply and high demand
According to the Denver Metro Association of Realtors, more homes were purchased in the Denver metro area this past year than in any previous year. As home inventory decreased, demand did not slow down by the end of 2021. At the start of 2022, only 1,477 homes were available to buy, a 34% drop from the 2,248 homes for sale in December. Because of this, home prices may increase while the number of homes sold will decrease. According to experts, about three months' inventory is needed for a market to no longer favor the seller. Denver currently only has two weeks' worth of real estate, so it remains a seller's market.
While many experts predict that prices will continue to rise, some believe the appreciation of Denver real estate won't have as steep of an incline. The last time that Denver saw back-to-back years of double-digit appreciation was between 2015 and 2016.
All that to say, if you hope to buy a home in the Denver area, you may want to act fast. Washington Park is one of the most popular neighborhoods for families, with its central playground and expansive walking space. You will find a range of homes, from luxury mansions to cozy brick bungalows among Washington Park real estate for sale. Experts predict that the definition of luxury homes may change in 2022, meaning higher prices for smaller homes in desirable locations. One million dollars could have gone farther toward Washington Park real estate for sale in 2021 than it will in the coming year.
But, the new year has only just begun, and no one can be certain how exactly the housing market will operate over the next few months. Chief Economist Lawrence Yung was recently quoted in the Denver Post saying that the recent housing boom is over, possibly leading to a more even real estate market in the coming year. Even if this is the case, desirable neighborhoods like The Highlands continue to grow. Consulting with a Highlands realtor is a wise decision, even if you are only considering settling down in one of The Highlands' three districts: Highland, LoHi, and Platte Street.
What could change
In some areas of Denver, Colorado, new builds attempt to keep up with the housing demand. Across the board, new homeowners are willing to front the cost of the materials to ensure that they will have their dream home. Starting a new build could be a desirable option for potential buyers who have found the perfect neighborhood but have yet to find an ideal home.
While it may seem that a home in the Denver area is out of reach, this may not be the case. One possible reason for the current low inventory could be that some homeowners are unwilling to part with their homes and brave the seller's market as buyers. However, others are looking to relocate or downsize, putting their Denver homes on the market and possibly increasing inventory. As the Denver housing market slows down due to the increasing demand, many home buyers turn to neighboring cities, like Colorado Springs, for housing opportunities, freeing up some real estate in the Denver Metro area.
For now, Denver homes continue to increase in price and value, and the market remains competitive. With current societal changes, like more people working from home than ever before, the demand for homes is likely to remain steady. Especially in highly sought-after areas like Washington Park, Colorado residents want to invest in Washington Park real estate for sale so that they can spread out and feel more comfortable as they spend most of their time at home. At the end of last year, the median sale price in Washington Park was $1.2 million.
Spending an excessive amount of time at home can be a lot more enjoyable in neighborhoods with a desirable surrounding area. If you are looking to live in a fast-growing community filled with a variety of local dining options as well as local entertainment, The Highlands could be the place for you.
Luckily, experienced Highlands realtors can guide you in the process of turning homes for sale in this bustling area into your next investment. At the end of last year, 45% of homes in The Highlands sold over the asking price. If the current predictions for 2022 hold, then buying a house now could mean a valuable return on investment if you intend to sell in the coming year. It could also mean that you'd better act fast before your dream home is off the market.
If these predictions for 2022 inspire you to make a move to the Denver area, contact trusted local real estate agent Eddie Johnson to start looking for your new dream home in the Mile High City.
If these predictions for 2022 inspire you to make a move to the Denver area, contact trusted local real estate agent Eddie Johnson to start looking for your new dream home in the Mile High City.
