A new report from California-based CoreLogic suggests that Denver's still-hot housing market could cool down over the next year, and that metro homes now seriously overvalued could drop as much as 10 percent by next spring.
"Declines in HPI [Home Price Index] forecast are in large part driven by the expected unemployment rate over the next year," explains CoreLogic deputy chief economist Selma Hepp explains. "A large share of Denver jobs are in industries that have suffered as a result of COVID-19, such as mining, logging and construction and trade, transportation and utilities — but also fallen oil prices. Jobs in these industries are not expected to return as fast as leisure and hospitality or other services may."
As a result, she says, "the market conditions indicators that suggest the Denver market is overvalued are tied to growth in real disposable income per capita, which has grown at a slower pace than home prices."
Suspicions confirmed! Says James:
This is why I left and came back to Atlanta. The cost of living in Denver grows every month and my salary couldn’t keep pace.
You are telling me that a fifty-year old house on .10 acres of land with 800 square feet for 395k is overpriced? Nooooooo.
Good, bring the prices back down for residents, $220,000 houses that are dilapidated and "as is." Greedy assholes.
I’m waiting to buy. I bet money as soon as this COVID shit is over the housing market will crash.
But don't hold your breath, suggests Anne:
As of Friday, absorption rates in Denver is 1 month and Northern CO 1.3 months. It’s a seller's market and it’s crazy out there.
How many times do we have to hear this? They aren’t dropping enough to be a difference for buyers. Colorado is expensive. Period. Is what it is. Been hearing this for four years straight.
Erminio ups the ante:
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They have been saying the same thing for over five years. It comes down to basic supply and demand. People are still moving to Colorado and there are still not enough homes available. As COVID hot spots rage on the coasts, Southern states and Midwest, we will see more migration to Colorado. Throw a hurricane or two in the mix, paired with historically low interest rates, and we will definitely see more people move out here to buy. Ten percent? I don’t think so! Especially if Colorado can keep its infection rates down, the economy will recover much quicker than some other states. It always does.
With all the issues going on all over the country, Denver is probably one of the last nice big cities in the entire U.S. ....
What do you think of the Colorado real estate market? Will more people move here to avoid COVID and other issues? Post a comment or share your thoughts at firstname.lastname@example.org.