We are one month into the new year and I am still being asked how the 2017 real estate market is going to look in Colorado. After watching the market daily, I have been seeing a few interesting trends already taking place in the Denver area.
As I see it, we are heading into another very healthy real estate market in Denver (regardless of whether you’re buying or selling). While no one knows or can predict exactly what the market will do, I put together my top five Denver real estate predictions and trends for 2017.
- Interest rates are still historically low but are going to continue to increase. We all know that interest rates the last couple of years have been ridiculously low so naturally we can expect them to go back up. Research suggests they will continue to hover around 4% for much of the year but may go up this summer.
- Home values will still appreciate but will level off more in the Denver market. We won’t be seeing the crazy appreciation that we’ve seen the last few years. The good news is home values will still rise, just at a slower rate.
- Home buyer demand will remain strong in the Denver area as a result of continued healthy job growth in the region and people relocating to the state. High buyer demand will continue to create a lack of inventory of homes available for sale on the market.
- More price decreases will take place in 2017 due to over eager sellers pricing their homes above market value; however, don’t worry…sellers will still be able to capitalize on the above average equity they’ve earned the last couple years. It will be less of a seller’s market in 2017 and buyers that work with savvy real estate agents will put in offers that are true to the market value and comps in the area.
- The days on the market will rise moderately for existing homes. I’m not talking a major slowdown but homes won’t fly off the market as quickly as we saw last year and the year prior. Since it will take a little longer to sell your home in most areas/neighborhoods, you will want to be sure to price your home right, make the right upgrades, stage your home, and have the right agent assist you to avoid any delay in selling your home.
Bottom line is, the market will start to stabilize and become more normal than it has been. So if you are looking to sell your home, be sure to work with an agent to put together a solid game plan that will meet your personal real estate goals and work in this year’s market. If you are looking to buy a home, now is still a great time to take advantage of good interest rates. Get pre-approved for a mortgage and be ready to buy when you find a home that meets your needs and desires. Home values won’t be decreasing, but the rate of appreciation will continue to slow down. The market will be healthy for both buyers and sellers in 2017.
Have real estate plans in 2017 or questions, don’t hesitate to give me a call. I would love to be your real estate resource!