2023 is a good year to be investing in real estate in Colorado, with the inventory supply of single-family homes being double what it was in 2022, real estate prices are currently in the buyer's favor. Denver real estate has a great track record as an investment opportunity. New investors, however, are always a little nervous before entering the market for the first time.
That's why we've put together this list of trends to consider in 2023. Keep reading to see what you should know before investing and why now is a good time to jump in.
1. Demand Is Beating Supply
Two key statistics to watch in any housing market are the supply of available properties (usually measured in months' inventory) and how long houses are, on average, staying on the market before getting snatched up. In Denver, both of these metrics are quite low, even though they are higher than they were a year ago, which means the region's housing market is tight for buyers. The overall effect of these trends is that housing prices in Denver are relatively stable despite the national real estate trends suggesting that local prices should be in free fall.
2. Denver Real Estate Market Is Relatively Cheaper
The USA as a whole may see the average price of a home increase by around 1% in 2023, with some areas seeing more growth while other areas' prices drop. Denver is looking to be one of the areas that will see a more severe drop than most. This, however, doesn't necessarily translate into a higher number of sales (as we see with the excess demand in point one).
With the inflation and interest rates quite high at the moment, many people are opting not to buy so as not to lock their mortgages in at such high-interest rates.
3. Rent Is Up
Because of these statistics, we're seeing that rental properties in Denver are doing well. Particularly family-sized properties, like four-bedroom apartments, with some of these properties' rental prices increasing by as much as 10% in the last few quarters.
What this all means is that you could do well for yourself if you have a property you could rent out. If you're one of the very few with cash to buy a rental property in Denver, that could also be a very good investment in 2023.
4. Declining Rates May Make Demand Tighter
Interest rates are predicted to decline in the US over the next two years. This opens the market up to less expensive mortgages and could in turn spike demand even further in Denver as more people warm up to the idea of taking out a loan for a new house. This is why now may be the best time in the next few years to get into the Denver real estate market.
Learn More About Reall Estate Investments Today
Investing in real estate is one of the smartest investments a person could make, and the Denver real estate market is in a position that could potentially make a smarter investment than most. Properties are hard to come by in the local housing market, which is keeping their prices stable amid the national declines. This also means that many people are renting, leading to an increase in rental incomes for most property types.
However, many people are avoiding making debt right now while interest rates are forecasted to drop in the near future. This means that now could be the last good opportunity in a while to invest in Denver real estate. If you want to jump on this opportunity, then contact us today.
