You May Be Busier Than Ever in Colorado’s Hot Real Estate Market
Despite the onset of the COVID-19 pandemic last year, the Colorado real estate industry has remained strong. In 2021, markets across the state are forecasted to continue that momentum. With high demand, limited inventory, and rapidly rising home sale prices, real estate agents all across Colorado should gear up for another booming year.
2021 Colorado Real Estate Outlook: Hot
In November 2020, the average home in Colorado was priced at $431,100, a 7.1% increase year-over-year. There’s little sign of prices stalling, though, as Zillow predicts this figure will rise another 10.2% within the next year. Rising prices echo the gradual healing of the economy statewide, signaling that this year could be profitable for agents and sellers alike, while low-interest rates maintain some degree of affordability for buyers.
Along with rising home prices, home sales statewide grew 19.6% year-over-year in November 2020. Inventory also fell a significant 60.3% in that same time frame while the days on market fell 23.1%. This momentum illustrates a departure from the typical seasonality of home buying and is a good sign for the coming winter months. Buyers are still eager to commit, even without the draw of spring curb appeal and warm-weather open houses. Between lasting low-interest rates bolstering demand and a consistently low supply, Colorado is a seller’s market as 2021 unfolds.
In the midst of a national big city exodus, rent prices increased 4.3% statewide and decreased 3.1% in the Denver metro area. Meanwhile, only 0.3% of Colorado homeowners fell delinquent on their mortgage, and equity slipped into the negative on only 1.7% of homes statewide. So, while new renters flock to rural and suburban Colorado, current homeowners continue to thrive as well.
2020 Colorado Real Estate Market Data
|Zillow Home Value Index||$431,100|
|1-Year Change on Home Values||+7.1%|
|1-Year Change on Rent Prices||+4.3%|
|Homes With Negative Equity||1.7%|
|Delinquent on Mortgages||0.3%|
|Buyer’s or Seller’s Market||Seller’s|
Market Insights for Colorado
While Colorado’s economy is expected to bounce back after grappling with COVID-19, the resilient housing market is a bright spot in the new year. State-level policy goals designed to fight inequality as well as a gradual return to air travel could further help mitigate some of the economic damage. Federal assistance may also bolster economic growth and compound success in real estate. Though Colorado’s lucrative tourism industry took a hard hit last year, here’s how the state ranks among the nation:
- First in economy
- Eighth in infrastructure
- Eleventh in education
- Twelfth in health care
With a strong 2021 forecast, Colorado real estate agents will need to be at the top of their game. From buyers battling rising prices to sellers fielding multiple offers, there has never been a better time to serve your fellow Coloradans. This year, agents can expect to benefit from and help contribute to a booming local and national economy as the Colorado real estate market heats up.
Take On 2021 With the Best Colorado Real Estate Courses From The CE Shop
Enroll in our Pre-Licensing program now to get your career started and begin connecting your fellow Coloradans with the home of their dreams. Or keep going strong with one of our comprehensive, 100% online Continuing Education packages. Want to stay up to date on everything Colorado? Join the Mountain West Real Estate Facebook Group!