Your lease is up in a couple of months and you are ready for a change. You've always wanted to live in Colorado, but is now the right time to buy property there?
Throngs of people are migrating to Colorado every year! At the end of 2018, the United States Census Bureau released a report showing Colorado with the 7th highest growth rate in the country! Something must be drawing so many people to buy property in Colorado.
If you want to move to Colorado this year, there are some things you should know about the Colorado real estate market before you start putting in offers. Keep reading to learn our top predictions for the real estate market in Colorado over the next year!
Up and Coming Colorado Neighborhoods
Wise buyers will look at these neighborhoods. They can buy cheap properties now and, as the neighborhood increases in popularity, their property value will balloon!
Athmar Park features charming older homes that need a little sprucing up. That means you will need to spend a little money upfront to give these gems a facelift, the return on investment is sure to be well worth the investment!
The Sun Valley area doesn't look like much right now, but there are projects in the works. A new entertainment district is on the way and they plan to replace dilapidated housing with mixed-income housing. Since most of the housing is inexpensive now, you're sure to find a great value on a house that will see a dramatic increase in value.
Colorado Real Estate Market Generational Competition
The migration into Colorado is starting to see baby boomers and millennials competing over the same properties. The number of millennial homebuyers who come to the Centennial State is skyrocketing! Right now, millennials make up a huge percentage of the population in Colorado, more than any other single generation.
Millennials are not kids anymore, some Millenials are entering their thirties! They are starting families and buying smaller, starter homes.
Baby boomers are nearing retirement age. Many of them are looking to trade their 5+ bedroom homes for something smaller, now that their kids are out of the house.
That means both Millenials and baby boomers will both be looking for 2-3 bedroom homes in walkable neighborhoods. Both generations want convenient neighborhoods that are easy to walk and homes with touches of luxury.
The interesting question is, which generation will dominate this market in Colorado?
Stable Interest Rates
We expect the interest rates to remain stable in Colorado, but this could have both a negative and a positive side.
For buyers, a stable interest rate means you can take your time deciding on a property without the interest rate skyrocketing before you can sign the loan documents. It's always best to take your time when making big decisions like buying property, but interest rates that could go up at any minute cause buyers anxiety leading to making rash decisions they may regret later.
The downside to stable interest rates is that more people will want to buy property right now, leading to an increase in competition. When more buyers show interest in the same property, it leaves less time to make a decision because you need to pull the trigger before anyone else!
Good or bad, we expect to see the interest rates in Colorado remain stable for a while longer.
Buyers Can Take a Breath... but Not for Long!
The rapid-fire sales are starting to slow down a touch. Homes in Colorado are staying on the market a tad longer than in previous years. This will allow buyers to make better decisions because they have more time to research and decide on a property.
In 2019, the number of properties on the market grew a little bit, which was enough to slow the feeding frenzy where buyers were snapping up properties in a heartbeat, even if they weren't the perfect fit. More properties on the market means there are fewer buyers competing for the same property!
But, don't rest on your laurels too long! A seasoned Colorado Springs realtor will tell you that you shouldn't deliberate too long on a property or it will still get snatched out from beneath you by another buyer.
The Rise of the Mother-In-Law Suite
We are seeing an increase in the number of properties with accessory dwelling units (ADU's) which are often used for an elder parent (or parent-in-law), a nanny, or sometimes for older children who need their independence (but might not be able to afford rent yet.
Some places, like Denver City, are starting to welcome these "granny suites" as a way to encourage population density in more rural areas. Other areas claim that ADU's lead to overcrowding and refuse to lift the ban on any mother-in-law suite.
On top of the zoning difficulties, the people who want to build ADU's find that they cost at least $200,000 to build. Many homeowners can't invest that much into a project right now.
Regardless of the roadblocks, we are seeing the interest in building mother-in-law suites rise, especially in towns that have relaxed their ADU regulations like Denver City.
Real Estate Predictions: Now You Know!
We hope this article helped illuminate you about our predictions for the Colorado real estate market for the coming year. If you have some of your own predictions, we would love to know! Leave us a comment below!