With colder weather around the corner, you might be wondering if the real estate market in Colorado is going to feel a chill, too. It’s never easy to predict what the market is going to do, especially when 2020 has dealt us a fair share of rollercoasters - COVID-19, economic obstacles, AND a presidential election. However, there are some trends that give us some insight into what the next few months may hold.
Rise in remote work drives demand in Denver
With many companies adopting a work-from-anywhere model, many out-of-state buyers have their sights set on Denver. Although Denver metro area prices are high (and going higher), the cost is still lower than many popular markets on the East and West coasts. With office locations no longer a barrier for deciding where workers can live, it’s easy to see why many people want to relocate to Colorado.
Continued demand for the Denver real estate market
According to The Denver Post, October represented a record-breaking month for Denver real estate, with an average closing price of $625,100 (an 18% increase over last year) and only 4,821 active listings (a 43.7% decline from last year). The increase in competition and lack of inventory means that the Denver market is likely going to stay hot!
The median number of days on market plunged to six (down from the previous record of nine days). Low inventory and low days on market are compounding to create conditions for continued growth in the Colorado market.
The Colorado luxury market is on the rise
A recent HousingWire article detailed the real estate boom in luxury markets, like Aspen and Vail. Out-of-state buyers are taking the opportunity to purchase a second home or permanently relocate to a destination city.
In Eagle County, the average home price rose by 43%, while the supply of homes dropped by 43% compared to the same time last year. The ongoing, relentless demand for homes in Colorado’s mountain towns has the potential to disrupt a longstanding balance between primary homeowners, vacation rentals, and second homeowners. Colorado’s luxury market is experiencing demand and growth like we’ve never seen.
All signs point to ongoing growth
2020 has been a banner year for Colorado real estate, but if this year has taught us anything, it’s to expect the unexpected. It looks like the winter months will deliver on continued price growth fueled by competition and low inventory. As a popular state with a wide variety of amenities and activities (skiing, Red Rocks, sunshine - we really do have it all), it’s no surprise that we’re a fantastic destination. Questions? Don't hesitate to contact me at 8Z Real Estate today!