Investing in Denver real estate can be a worthy investment due to a steady rate of appreciation. In fact, it has a track record of being one of the best long term real estate investments in the nation. The average real estate appreciation rate in Denver has been roughly over 7% for the last ten years. Low inventory, low interest rates, a strong job market, and a steady economy is fueling the demand in the Denver real estate market.
Despite the big gains in housing stock, the Denver-area home prices are holding steady year-over-year. 2020 has begun very much still in favor of sellers for the Denver housing Market. In 2020, the home prices are expected to rise by 3 to 4 percent, which means it is likely to be another year of affordability crisis for buyers.
Currently, there is less than a month’s supply of residential single family homes (attached plus detached) in Denver, in the price range of $300,000 to $499,999. Anything under four months means sellers have the power in negotiations. This shows that the supply is so tight in Denver, that buyers would need a large influx of inventory to meet their demand in the coming months. [Read more…]