According to the results from a recent survey published by Zillow, Denver is expected to be the fifth-hottest home market in the U.S. in 2021. The Zillow Home Price Expectations Survey considers the predictions of more than 100 economists and real estate experts. More than half (56%) said they expected home value growth in Denver to outperform the national average this year.

Experts on the panel seemed optimistic about relatively cheaper markets in sunny locations, and less so on expensive coastal cities. Austin, Phoenix, Nashville, and Tampa made up the top four markets that the panel saw as most likely to outperform the rest of the country.

On the other hand, markets such as New York, Los Angeles and San Francisco were predicted to be the most likely to underperform the national average, although Zillow still expects growth in each of those markets.

Last year's survey respondents pegged Austin as the likely hottest market in 2020, a prediction that was proven to be true. By mid-December, the median list price for homes in the Austin metro was up 23.6% year over year, the largest increase among the 50 largest U.S. markets, according to Zillow.

The results of the survey won’t come as a surprise to anyone keeping an eye on Denver’s real estate scene. Record-setting home buying activity has pushed active inventory in the 11-county Denver metro to historic lows, while forcing potential buyers to be more aggressive in their offers.

According to Denver Metro Association of Realtors' latest monthly report, just 2,541 homes remained on the market at the end of the year after buyers closed on 4,807 homes in the final month, the highest amount recorded in any December.

It’s true that Denver’s inventory is tight, but there are still some great options to be found with the right team on your side. If you’re looking to become a homeowner in 2021, give Metrowest a shout – we’d love to help you start the process.