2017 proved to be an unbelievable year, real estate wise. Job growth and low mortgage rates were major contributors to demand. While the shortage of inventory helped drive the home values, bringing most markets into full recovery since the crash in 2008.
The job market has been stabilizing across the U.S., however, Denver has had leading numbers in growth. The increase in job growth has lead to more people moving to the Mile-High city, creating a high demand for housing. Contrastly, the construction labor industry has struggled to find workers, leading to a deceleration in new home construction.
The combination of fewer new home builds and increased number home buyers has driven home prices to record highs. Similarly, with home values being as high as they are, many existing home owners have taken advantage of the increased equity and cashed out using that money for other things. Some have opted for remodels while others have used it to pay off debt.
For most of 2017, mortgage rates were at an all-time low. While mortgage rates did increase .5 %, they were still really low and didn’t really stall transactions. Although the Denver market has been great for sellers, it has had its negative impacts. For example, the high demand and influx of people that have relocated to Denver has driven rent prices up. Consequently, Denver is struggling with a Housing Affordability problem, one that Mayor Hancock has developed a plan to resolve.
Overall, 2017 was a great year for sellers and new homeowners. What does 2018 hold in store? Check back for the 2018 market outlook!