Residential real estate in Denver area was driven by historically low inventories, high demand, and affordability concerns this year. So what will 2017 have in store?
As 2016 comes to a close, the report spotlights how the hot real estate market fared this year, experiencing both record highs and lows.
In July, Denver-metro hit an all-time high for the average sold price of a home at $420,178 and median sold price at $365,000. February marked a record low for month-end inventory at 3,963; comparatively, the all-time high was in July 2006 at 31,989 listings.
“As we spend time with friends and family enjoying all the turkey and trimmings, we also give thanks to another hot summer selling season,” said Steve Danyliw, Chairman of the DMAR Market Trends Committee and Denver real estate agent. “In reflecting on the good and not so good of our summer housing market, the question on the mind of many REALTORS® today is how long will this market last?”
Looking forward into 2017, the Trump administration may impact the housing market. Housing interest rates have already seen a slight increase since the General Election which some are calling part of the “Trump Bump.” According to Danyliw, interest rate increases in Denver-metro could price out first-time homebuyers. Also, the Dodd-Frank act, which established the Consumer Financial Protection Bureau, is seemingly in the crosshairs for repeal or more likely a significant re-work. Additionally, Fannie Mae and Freddie Mac may transition from a government-sponsored enterprise to a completely privatized organization.
