Housing prices in the metro Denver area are about to increase at a record rate, according to investment bankers. Goldman Sachs recently released a forecast of the nation’s housing market future. There will be no market crash at the tail end of the record homebuying frenzy that accelerated through the pandemic. Instead, limited inventory will push home prices up 16 percent by the end of 2022.
If that predicted trend happens in Colorado, the Denver metro’s single home price will reach $651,290 by December 2022. More likely, prices will go up even further. This projection assumes 2022 will start with the most recent median home price of $562,000. In the last five years, however, home prices have usually gone up from September to January. The Denver metro area will start Goldman Sachs’ projected growth from a higher price point in January 2022.
Also, the Colorado housing market usually blows past the national trend. Metro Denver’s housing market has risen faster and further than the national average in the past five years. The region’s home prices rose by twice the national rate since 2016.
The U.S. median sales price for a single-family home was $368,000 in the second quarter of 2016. It grew 30 percent to $485,000 by the same quarter in 2021. In the same time period, metro Denver’s single-family home price went up 61 percent.
In other market news, the Denver Metro Association of Realtors released the following statistics from October 2021:
- The median price in the Colorado housing market statewide was $525,000, up 15.4 percent year over year.
- The average sales price was $678,755, up 10.7 percent.
- Percent of list price received was $101 percent.
- Days on the market until sold was 28, down 34.9 percent.
- Closed sales of single-family homes were down by 18 percent.
- Month’s supply was down by 40 percent to 0.9 months.
- Inventory of active listings dropped by 34.8 percent year over year.