Do you love following how different real estate markets in the country are performing? If yes, then I am sure you know that Denver is among the top 10 places in the country where the real estate market has stabilized the most. This means that for those planning to invest in Centennial real estate and other suburbs such as Littleton, Denver-Aurora-Lakewood, Highlands Ranch and Denver metros, this is the right time to do so because homes are gaining value year after year.
If you look at the Denver real estate market in 2015, the highest number of returns was recorded that year, making the place the country’s leading real estate market. The market is doing tremendously well in 2016 and the trend is expected to continue throughout 2017. However, the growth is expected to increase at a decreasing pace in the future because prices are believed to have reached the peak in Metro Denver. Nevertheless, Centennial real estate and other neighboring areas are expected to keep on growing in the coming years. For those planning to invest in Denver real estate, the following are the major things to expect in 2017.
Property buyers should prepare for tough times on appraisal requirements
Real estate investors in Denver should prepare for tough times due to licensing requirements that have significantly changed for appraisers. Investors should be prepared for a shortage of appraisers in 2017 and this will delay the time taken to close real estate deals. Additionally, homebuyers in the region will be required to schedule for appraisals before properties are inspected which could be inconveniencing and expensive because homebuyers will have to pay for appraisals on deals that might not proceed. However, the situation will change later in the year and there will be a healthy and balanced market.
Fewer inventories in the market
Those planning to buy real estate properties in Denver should not expect the market to be flooded with inventory. Just like in 2015 and the half of 2016, the supply of homes is expected to be less than the demand, especially in the city’s luxury market and older neighborhoods. Consequently, demand for homes will be very high in the tight areas of Denver any anything below $1million will be selling like hot cakes. Homebuyers who want more choices in the coming year should consider buying in the Suburbs of Denver. Highly developed areas are expected to remain a seller’s market in 2017.
Strict construction rules for builders
Home builders and constructors should expect strict construction defect laws from 2017 because laws have been established to protect the safety and right of homeowners. More laws are expected in the near future and homebuilders should be prepared for a tough moment. There is a high likelihood that new rules and regulations will discourage the construction of new homes in the area and this will lower inventory levels. The supply of Condos is currently very low in the area and the number is expected to decrease even more in 2017. This is because many municipalities in the area have been left to make their own laws, hence discouraging developers to build more homes.
An increase in interest rates
If you are planning to buy real estate in Denver and its environs, then you should do it now because interest rates are expected to go up. The Federal Reserve has predicted an increase in interest rates in the near future. For instance, it will be expensive to buy a single standard family home in Denver in 2017 if signals given by the Federal Reserve is something to go by. Homebuyers are advised to act now and not to wait until interest rates start shooting up.
High demand for housing and high home prices
According to a report given by Zillow, demand for housing in the area is expected increase in 2017 and this will push home prices upward. Home prices normally go up whenever there is high demand for housing. The population is also expected to keep on growing in the area and this will result in a higher demand for housing. This means that homebuyers will have to compete for limited housing available and sellers will increase the prices so that they can gain more. This makes the area a hot spot for flipping homes because 2017 market is expected to be a seller’s market. Investors buying properties now are going to make more profits if they sell those properties next year.