Right now, Colorado is on the tail end of a buying frenzy within the real estate market. There haven’t been nearly enough listings to account for the amount of new residents looking to settle down in the Centennial State. While some listings are seeing price drops, others are still steadily rising especially in the Denver metro area.
Colorado Single-Family Home Values
Single-family homes statewide in Colorado have a median price of $530,000 for June of 2021, which is more than 24% higher than June of 2020. This is nearly 1.5 times as much as the national average which currently sits at $370,600 for a single-family home. Listings for the state are up 20% bringing over 12,000 new homes to market with it.
The housing market in the Denver area is even hotter with the median price reaching $585,000 which is a 26% increase compared to just one year ago. Even though the overall market is up, things will begin slowing down as the summer months come to an end and less buyers are frantically trying to snag their dream home.
What’s Causing the Rising Prices?
Colorado has always been a hyped up destination for anything out in nature or mountains. The gorgeous slopes and idyllic valleys make any mountaineer dream of the day they can return. Cities such as Denver, Aurora, Loveland and Fort Collins bring some of the most vibrant night life scenes to help unwind after a long day on the trail. On top of this, nearly every city is near a ski resort or campground perfect for the ideal family vacation or even just a weekend getaway for locals and tourists alike.
Adding even more reasons for out-of-state residents to move to CO is the tax-friendly nature of the state’s property and income tax. The income tax rate is a flat 4.63% with the effective property tax rate coming in at 0.52% compared to the national average of 1.16%. Savings on high value homes and salaries are definitely a win for anyone’s budget when choosing the next chapter in their real estate saga.
Don’t Worry, the Dust Will Settle
It’s always exciting to get approved for a home and start hopping into bidding pools hoping to be the lucky winner of a new home. That being said, those looking for a more straightforward process for purchasing will be happy to know that forecasts are showing a slow but steady decline in listings and showing. As more and more families settle in after the summer, those with remote jobs will see more agreeable prices to facilitate their move due to new career freedom from the office.
Whether it’s a home in one of Denver’s many sought after suburbs, or a nice piece of land tucked away into the mountainside, our lineup of world class mortgage specialists at the Potempa Team can help find you the perfect home lending solution that gets you the home you want on the terms you need.