Colorado Real Estate Market: Predictions for 2024
Maybe you're gearing up to make a move in 2024, or maybe you are waiting to see what happens before you consider moving. We want to be a resource for you that you can lean on when it comes to all things new home construction! We came across a great article that provides insight into what experts expect to happen in 2024. You can read the full article HERE.
We wanted to highlight a few points that we thought would be beneficial to you:
- Average Home Prices: The average median home price in Colorado is $611,000, up by 6.3% YoY. In 2024, experts predict the median sale price will increase due to the tight inventory. Currently, the sale-to-list price ratio is at 98.5%, with a decline of 0.1 pt YoY compared to September 2022. Home values in Colorado rose by 37.5% in the last 5 years.
- Home Sales: As per September 2023 data, home sales decreased by 19.4% YoY! In September 2023, 6,279 homes were sold, down from 7,787 in September 2022.
- Average Rent Prices: Rental costs vary statewide. An average tenant in Denver pays $2,000, while the one living in Colorado Springs pays $1,576.
- Months of Supply: The average month of supply is 3 months. CO’s demand can’t be satiated with the low supply. CO’s house scarcity is worse than the national housing market.
Colorado Housing Market Predictions 2024
1. Home Sellers Will Return to the Market in 2024: Sellers who chose the sidelines in 2023 will come back. Especially those who can’t avoid new jobs or want to move to a cheap place. Whitney, the analyst who predicted the 2008 financial crisis accurately, has forecasted that baby boomers looking to downsize will also add up to 30 million housing units. Yowaza!
2. Mortgage Interest Rates Will Stabilize by the 2nd Half of 2024: Mortgage rates hit 7.79% in October 2023, the highest level in 23 years. However, the rate dropped to 7.35% in November due to the softening labor market and slowing economy. Even the annual inflation rate went from 3.7% to 3.2%. We think the rates will remain above 6%, but they will stabilize in the second half.
3. The Number of Home Buyers Will Rise: The historically high-interest rates averted buyers in 2023. But mortgage demand rose after the interest rates lowered to 7.35% in November. The easing inflation and stabilizing rates will bring back house hunters.
4. Home Prices Will Continue to Rise: Home prices rose steadily in the top metros across CO YoY, reaching $611K in September 2023. Experts predict home prices will continue to rise until the low supply-high demand dynamic changes.
5. New Home Construction Sales Will Increase: Colorado’s new home construction is expected to increase in 2024 because the inventory of existing homes for sale in Colorado is at a historic low.
