Top 10 Real Estate Predictions for 2017 Denver Colorado Real Estate
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- We are NOT in a real estate bubble. According to national economists the Denver Metro Real Estate Market does not show the signs of a bubble. There are six factors that have to be present for a market to be in a bubble. The Denver Metro Real Estate Market only has one of the six factors in our current market. We are appreciating at a higher rate than inflation but all indications show that Denver Metro Real Estate appreciation is slowing down.
- Interest rates will go up. We all know this…Interest rates have been kept at stupid low levels for years. We have all known that interest rates have been a total facade. (Facade = an outward appearance that is maintained to conceal a less pleasant or creditable reality.) Higher rates will help us get back to a more normal market. Buyers that purchase in 2017 or have purchased in the past 8 years will look back and LOVE their current interest rates. If you need to refinance call me as I can help you locate a great local lender. No, I’m not a lender.
- Home values will still appreciate but will begin to level off in the Denver Metro market. We are now in a shift market. We experienced the crazy appreciation of the past 6 years and now buyers, interest rates and appraisers will put the breaks on the high flying market. We are already seeing this in many areas. Home much is your home worth?
- Home buyer demand will remain strong. Job growth, low interest rates and beautiful Colorado will always attract buyers to our area.
- More price decreases or price reductions. I have already noticed an increase in price reductions in the MLS which started at the end of July. Over eager sellers and Realtors are pricing themselves out of the market initially and having to readjust prices to entice buyers to act.
- The market will start to stabilize and become more normal. Yes certain neighborhoods and price ranges will continue to be HOT but they are typically HOT during any market.
- DOM or Days on Market will rise. It will take longer to sell a home in 2017. However, the home located in the best spot, priced well and updated will always sell quickly.
- Is there a Buyers Market around the corner? Yes it is coming but probably not for at least 2 more years. That is from the Economists not me. I’ve attended several economic meetings in the past few months listening to national and local Economists talk about the road ahead. The one main consensus is that we are in for a good market for the next 2 years.
- Inventory remains tight in specific price ranges. Entry level homes, condos and townhouse priced below $300,000 will still move quickly. The $100,000 to $300,000 price range will also remain super competitive and have tight inventory levels. High-end homes are already starting to show 1-2 years of inventory in certain neighborhoods. Now is a GREAT time to buy a luxury home.
- This might be the best time to buy a luxury high end home since 2011. Interest rates may never be this low again and there is a great inventory of homes priced over $700,000.
These are my predictions or observations from our current market. It will be interesting to see how it plays out over 2017 and beyond. Cheers and here’s to a successful 2017 to you.