When Will Denver Home Prices Cool Off?

According to a just-issued study completed by CoreLogic, Denver has seen housing costs rise the third quickest throughout a 15 year span, out of 20 major cities surveyed. While metro home prices are expected to keep rising over the course of 2021, the rate of increase is expected to slow down considerably from the current record-setting pace. The average price of a detached home in Denver is $674,990 (April 2021), an increase of more than $40,000 from last month and more than $100,000 above the same period a year ago.

Here’s a CoreLogic graphic highlighting the combined HPI percent change for the Denver and eight other major metropolitan areas. Denver’s year-over-year percent change is the third-fastest among those listed, behind Phoenix-Mesa-Scottsdale and San Diego-Carlsbad.

Click here to read the Westword’s interview with Selma Hepp from CoreLogic in which she explains the cause for the rise in housing costs, if & when we can expect the Denver market to peak, and why there is only a 1.9 year-over-year percentage change expected for the market through February 2021.

Find the Denver Metro Association of Realtors (DMAR) April Market Trends Report here. Here are a few interesting facts found in Market Insights:

  • Colorado is home to low property taxes. According to a study, the two counties with the lowest rates were both found in our state: Jefferson County (0.55 percent) and Arapahoe County (0.57 percent.)
  • Builders are struggling with the cost of building materials ranked as the number one problem by the National Association of Home Builders and availability of building materials ranked second. Local contractors are telling clients to order appliances a year in advance to make sure they arrive on time.
  • The Wall Street Journal notes that there are more real estate professionals than homes for sale in the U.S.- a feat that has only occured once before in December 2019. In January, the National Associaton of Realtors had 1.45 million members, a 4.8 percent increase compared to a year earlier.
  • Rates ticked up to 3.18 percent as of April 1st, a mere 0.25 percent lower than they were a year ago, 1.5 percent lower than a decade ago, 3.75 lower than two decades ago and 15 percent lower than four decades ago.