Anyone interested in the Denver metro housing market knows that in recent years, demand for homes has skyrocketed. A large influx of people moving to the city, coupled with slow construction of new homes, has created fierce demand, resulting in a buying frenzy.
Prices have risen steeply and quickly, sellers have been inundated with multiple offers, and buyers have often waived traditional protections, such as inspections, just to secure a purchase.
Certainly sellers appreciate the higher prices their properties are bringing. But this type of market creates anxiety for everyone. Transactions often fall through, as buyers who rushed into contracts get cold feet. And those without cash are often locked out of the market.
The good news is that this tumultuous situation is beginning to calm down. In recent months, inventory has increased in popular neighborhoods such as Washington Park and Park Hill. Meanwhile, homes are staying on the market a bit longer, and prices seem to be leveling off. While some of this is seasonal, we believe it’s a trend that will continue.
Does this mean the market has hit a plateau? We feel that rather than peaking, it’s simply settling into a more balanced situation, which is leading to positive developments. For example, some sellers are now allowing for contingencies, which lets those who want to move from their current homes close their property first. Buyers are enjoying more time to make wise decisions, and sellers are feeling more confident that closings will go smoothly.
We can all breathe a little easier.
Meanwhile, prices remain strong. Over the last year (as of August), prices have increased 12%. Current Denver appreciation outpaces most large U.S. cities, even as the rate of local appreciation now finds a more moderate cadence.