The Colorado housing market had three primary themes last year: increased demand, decreased supply, and rising prices. These are all trends that industry pros expect will carry into the new year; however, interest rates will likely be a variable.

According to an early-December market trends report from the Denver Metro Association of Realtors, in Denver alone, month-end housing inventory dropped a staggering 33.41% from October to November. And according to the Colorado Association of Realtors (CAR), across the state there were fewer than 6,100 active single-family listings in November, down nearly 40% from the year before.

Colorado’s huge spike in demand started in 2020, when the pandemic enabled for more remote work to happen and pushed people indoors to the point that Coloradans started looking for larger houses to accommodate their new work and school-from-home lifestyle.

In 2021, homes in the Front Range appreciated about 17% and areas like Boulder went up over 25%.

Rising interest rates may end up being what slows the pace of rising prices. Kelly Moye, a spokesperson and research committee member for CAR, said that interest rates will likely go up and with that, purchasing power will diminish. In an already expensive market, that could push buyers away from Colorado and into more affordable areas.

As the market stands now, real estate agents are seeing offers well above the listing price, a trend that could be in place for at least the first half of the year.

If you are thinking of buying, now is the time to move. Contact Metrowest today – we’d love to help you start the process!