The Denver Housing Market: Is 2022 a Good Time to Buy?

The Denver Colorado Housing Market is Notoriously Difficult to Break Into.

The housing market in Denver is notorious for being impossible to break into. Tales are told of bidding wars resulting in sales for tens of thousands of dollars above asking price (on top of already sky-high housing costs in Denver), buyers overlooking major repairs, and sellers having their pick of cash offers. For at least the last several years, things have been wild in the Denver housing market.

The Denver Housing Market is Shifting in the Current Recessionary Environment, Potentially Lessening Stress on Buyers.

However, given the current recessionary environment, increasing interest rates, and inflation, it’s reasonable to expect a shift in the housing market in Denver.

According to a recent report by the Denver Metro Association of Realtors (“DMAR”), the number of active properties sitting on the Denver housing market has almost doubled in a year, with 6,057 active properties available in June 2022 compared to only 3,122 in June 2021.

According to DMAR, the number of active listings in Denver proper grew 65.85% in just one month, between May and June 2022.

This change indicates the rate at which Denver homes sell may slow down. This may allow buyers a bit of breathing room as they search for their dream home in the Denver housing market.

DMAR also anticipates potential reductions in bidding wars and offers above asking price in Denver, a welcome change for buyers.

Housing Prices in Denver are Likely to Continue to Rise, as Are Interest Rates.

While buyers may be deterred by rising interest rates, the DMAR anticipates that, while “[i]nterest rates are perceived to be high at the moment,” they “may very easily continue to increase if inflation doesn’t decrease at a more rapid pace.” See the DMAR report discussing active listings and interest rates in Denver. Another DMAR report anticipates interest rates at the end of 2022 will be between 6-7%.

Similarly, while housing costs in Denver are currently high, DMAR anticipates housing costs in Denver will continue to rise.

If You’re Waiting for Housing Costs in Denver to Go Down, It May Be Time to Reconsider.

In summary, I advise against waiting to buy into the housing market in Denver until it “slows down.”

There don’t appear to be any signs that interest rates or housing costs in Denver will decrease in the near future. Buying now – before interest rates and home prices continue to rise – may be the best path forward for many looking to buy in Denver.

Get a Denver Born-and-Raised Realtor to Help Navigate the Denver Housing Market.

I was born and raised in a small Italian neighborhood in North Denver. I’ve spent the last 30 years working as a realtor in the Denver Colorado housing market.

I love this city, and I’m committed to helping everyone to find their perfect Denver home. I work with those who are new to Denver, long-time Denverites, and everyone in between!

If you’d like to chat about housing costs in Denver and how to break into the Denver housing market, give me a call or send me a text. I’d love to help you find your dream home!

Check Out My Collection of Free Resources for Navigating the Denver Housing Market.

In the meantime, don’t hesitate to check out my collection of common FAQs for Denver homebuyers. Buying a home can be overwhelming, especially in the Denver housing market. The FAQs are a great place to learn the ropes.

Hope to hear from you soon!

– Phyllis