Steady as the Rockies: Why the Denver Real Estate Market Isn't Headed for a Crash

Let’s answer some questions: Will the Denver housing market crash? Is Denver real estate overvalued? Will housing prices drop in Denver? Why is Denver real estate so expensive?

The world of property can sometimes feel like a rollercoaster, with whispers of market crashes and housing bubbles. In this blog post, we're diving into the data to debunk the crash rumors and highlight why the Denver real estate market is standing firm, backed by solid statistics that paint a picture of stability and resilience.

Consistent Appreciation in Home Values

Let's kick things off with a look at the numbers. According to the Denver Metro Association of Realtors, the median home price in Denver has shown consistent appreciation over the past several years. From 2010 to the present, the market has seen a steady increase in home values, demonstrating a pattern of sustainable growth rather than the erratic spikes often associated with a bubble. Even during the US housing recession of 2006-2008, prices of existing homes declined less through 2008 in the Denver area than in any of 20 major U.S. cities according to Standard & Poor reports.

Balanced Supply and Demand

One key factor in predicting market health is the balance between supply and demand. Denver has managed to maintain a delicate equilibrium, as suggested by the consistently low levels of housing inventory. According to the Colorado Association of Realtors, the supply of available homes in Denver has been relatively tight, keeping demand strong. This equilibrium is indicative of a market that's neither oversaturated nor on the verge of a sudden crash.

Diverse and Thriving Economy

Denver's economic landscape is as diverse as its stunning geography. The city has become a hub for various industries, including technology, healthcare, and renewable energy. With a robust job market, Denver attracts a steady influx of residents, ensuring a sustained demand for housing. The U.S. Bureau of Labor Statistics reports consistent job growth, reinforcing the city's economic strength and contributing to the stability of the real estate market.

Low Mortgage Delinquency Rates

Mortgage delinquency rates can be a red flag for a shaky market, but Denver seems to be keeping those concerns at bay. According to data from the Mortgage Bankers Association, Denver has maintained lower-than-average mortgage delinquency rates. This indicates that homeowners in the area are generally able to meet their mortgage obligations, a positive sign for the overall health of the real estate market.

While rumors of a Denver market crashes may swirl around, the local real estate market remains a beacon of stability and resilience. With consistent appreciation in home values, a balanced supply and demand dynamic, a thriving and diverse economy, and low mortgage delinquency rates, the Mile-High City stands strong against the whispers of decline. So, if you're considering making a move in the Denver real estate scene, rest assured that the data is on your side. Happy house hunting and for a more in-depth conversation, contact us here.