Are you wondering if 2017 is the right time to sell your property in Denver, USA fast? Well, as a matter of fact, real estate experts in the city have said that home prices are expected to plateau in 2017. We expect to see none of the rapid increases in property prices seen in Denver over the last few years.
Denver may have had a long three year stretch when property prices rose in double digits, which made it one of the hottest real estate markets in the USA, but that period is coming to an end. ‘
Mark Boud, a veteran Denver based economist, who works for the Real Estate Economics says, “As long as we have economic growth, we will likely bump along a plateau both in terms of price and volume.”
Mr. Boud adds that he does not quite expect the sort of slump last seen in Denver back in 2007 to 2009, when the subprime mortgage crisis was at its peak. That was a time when the market was inundated with foreclosures and distressed sales. While one can’t see a similar drop in prices in the current scenario, or in 2017, a slowdown in the housing market can only be expected.
The slowdown in prices is real. So if you buy a property in Denver, USA in 2017, there is a real chance that you would find that the price would remain the same even in 2022. The market here seems to have hit a plateau and there is no way to get out of that in the near future.
Anthony Rael, who heads the Denver Real Estate Market Trends Committee says, “If we get anything under 5 percent in appreciation, sellers will lose their mind and think the market is collapsing.”
Real Estate Economics projects median home prices in the metro region of Denver to grow by only 2.8 percent in 2017, and by just 1.8 percent in 2018. This follows a tepid growth of 5.4 percent in 2016.
Now, the numbers are not particularly bad, but when you consider that property prices in Denver have averaged a growth of 12 percent from 2013 to 2015, you would naturally be disappointed with that.
In fact, real estate experts predict a decline of 1.6 percent in 2020 and of 2.7 percent in 2021. That’s why one cannot see the same enthusiasm about the housing market in Denver as before.
Gary Bauer, a real estate agent in Denver says, “My personal forecast was that home-price appreciation this year would be in the 5 percent range.”
Redfin broker Michelle Ackerman adds that bankers have become very conservative of late, and this has certainly affected sentiment among buyers. Ms. Ackerman says, “That has triggered conservativeness on the part of buyers. Do the underwriters know something that we don’t?”
However, Mark Boud of Real Estate Economics says that properties for sale in Denver, USA are actually undervalued compared to the other cities in the US such as New York, San Francisco and Los Angeles. “We look at the 40-year trend line between mortgage costs and incomes. It moves up very slowly and Denver is still 1.8 percent undervalued,” Mr Boud said.