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Denver Real Estate Market Trends – What’s Happening Now
Wyatt Lovera
November 22, 2024
A Quick Peak
Denver’s real estate market continues to attract attention, drawing buyers and renters with its vibrant neighborhoods, strong economy, and scenic surroundings. Whether you’re considering purchasing a home or sticking with renting, understanding the latest trends can help you make smarter decisions.
In Today’s Newsletter
Home Prices
Renting vs Buying
Insider Advice
Home Prices: Slower, Steady Growth
After years of double-digit annual growth, Denver’s home prices have shifted to a more modest pace, with experts projecting increases of 3-5% annually through 2025.
This stabilization creates opportunities for buyers. The frenzied bidding wars of previous years have eased, offering more time to explore options. However, with prices still on the rise, waiting too long could mean paying more later.
Inventory: Gradual Increases
Denver’s long-standing inventory crunch is finally easing, with more homeowners listing properties and new developments popping up, especially in suburban areas like Arvada and Parker.
This uptick gives buyers more choices and, in some cases, more negotiating power. If you’re open to exploring beyond Denver’s core neighborhoods, you may find a home that better fits your budget and lifestyle.
Mortgage Rates: Stability Amid Change
Mortgage rates have fluctuated in recent years but stabilized in 2023, hovering between 5.75% and 6.25%. While higher than the record lows of 2020-2021, these rates remain manageable compared to historical averages.
For example, a $400,000 loan at 6.25% costs about $120 more per month than at 5.75%. Locking in a rate now could save you from future hikes, particularly as home prices continue to climb.
Renting vs. Buying: A Key Decision
Rising rents in Denver—up about 5% over the past year—are pushing some renters to consider homeownership. For a renter paying $2,200 a month, a 5% annual increase adds up quickly, potentially exceeding $130,000 spent on rent over five years with no equity gained.
Buying offers stability and the chance to build long-term wealth, making it a compelling option for many.
Stay Informed
With slower price growth, more inventory, and stable mortgage rates, Denver’s real estate market is ripe with opportunities. Staying updated on these trends ensures you make the best decision for your financial future.
Coming Up: Stay tuned for Part 2 of Denver Real Estate Market Trends, where we’ll guide you through Denver’s hottest neighborhoods and emerging suburban markets to help you find your perfect spot!