2020 Projections for the Greater Denver Area’s Housing Market
Last week, we published the year-end Market Report Wrap-up, and 2019 is likely to be the year we define as showing signs of an official “Tipping Point in Affordability.”
In 2019 for Attached and Detached Homes in the 7 County Denver Metro Region:
65,245 New listings were presented to market, of which 54,414 homes sold meaning that 83.4% of homes listed resulted in a sale.
Appreciation slowed from previous years, with an annual average appreciation 3.3% clearly indicating the affordability tipping point is happening.
Even with slowed appreciation we managed to have our best year in Total Sold Volume reaching just over $26 billion, a 9.3% increase over 2018.
Affordability is sliding down, and we now report that the number of transactions requiring financing is the highest we’ve seen in the last 10 years. 86.3% of homes closing in 2019 required some sort of loan to secure the property.
Looking into 2020, the next shift in the affordability tipping point likely surface when interest rates begin to rise. Rising interest rates will have an impact quickly on buyer purchasing power.
Thank you to Megan Aller and First American Title for compiling and providing this information!
If you have questions about this information, or would like to talk about how these projections might impact your home’s value or property search, contact us!
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