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2022: What to Expect in the Colorado Real Estate Market
December 22, 2021

2022: What to Expect in the Colorado Real Estate Market

by The CE Shop Team

You May Be Busier Than Ever in Colorado’s Hot Real Estate Market

Despite another year of uncertainty due to COVID-19, Colorado’s real estate market was on fire and home prices skyrocketed in 2021.

As we enter 2022, many of the same factors from last year’s booming market remain in full force. High demand, limited inventory, and rapidly rising home sale prices should have real estate agents all across Colorado gearing up for another booming year.

2022 Colorado Real Estate Outlook: Hot

In October 2021, the average home in Colorado was priced at $528,211, a significant increase of 22.1% (YoY). Zillow predicts this figure will rise by another 12.0% in 2022.

Colorado Housing Data Zillow
Source: Zillow

On the other hand, home sales stalled statewide this year, increasing by just 1.5%, much lower than last year’s increase of 24.2% in November 2020. While home sales have stalled, the median days on market have hit a new low of just 11 days. This figure highlights just how hot the housing market is, as competition is still fired up. Inventory hasn’t helped much either, with the number of homes for sale down 32.5% YoY and newly listed homes also decreased 0.3%.

Rental prices have followed the real estate market’s trend of increased prices, with the state’s average rent price increasing by 14.9%. In key markets, rent increased significantly; Denver’s rent increased by 17.2% and Aurora’s rent increased by nearly 35.0% on average.

While renters sweat out this hot market, current homeowners are thriving. Only 0.5% of Colorado homeowners fell delinquent on their mortgage, and equity slipped into the negative on only 1.5% of homes statewide. Additionally, homeowners have gained an average of $78,000 in equity on their homes.

Despite high home prices and sky-high rental prices, people are still flocking to the Centennial State. Between 2010 and 2020, the state’s population grew by 14.8%, bringing the total population to 5.8 million residents. This growth is no surprise, as Colorado ranked as one of the top relocation destinations in 2021

2021 - 2022 Colorado Real Estate Market Data

Zillow Home Value Index

$528,211

Home Value Change YoY

+22.1%

One Year Home Values Forecast

+12.0% 

Rent Price Change YoY

+14.9%

The Percentage of Homes With Negative Equity

1.5%

Mortgage Delinquency Rate

0.5%

Available Housing Inventory

9,667

Buyer’s or Seller’s Market

Seller’s

Market Insights for Colorado

In October 2021, the Bureau of Labor Statistics reported that Colorado’s unemployment rate was 5.4%, down from 6.2% in May 2021. This is still higher than the national average, but as Colorado’s tourism and hospitality continue to heal, so will the state’s unemployment rate.

Colorado Housing Market Forecast 2022

Colorado’s main appeal continues to be its remarkable natural beauty. Residents have easy access to top-tier hiking, skiing, fishing, and camping, not to mention the state’s growing urban areas have taken on their own unique culture. Beyond the state’s outdoors and entertainment, Colorado ranks as one of the top states to find a job, offers a laid-back lifestyle for many, and boasts a growing food scene. Here’s how the state ranks among the nation:

  • Fifth in education
  • Fifth best state to live
  • Tenth in healthcare

With an optimistic forecast heading into 2022, Colorado real estate agents will be in high demand, so you’ll need to stay at the top of your game. There has never been a better time to serve your fellow Coloradans!

Ready to Build Your Mountain West Empire With Real Estate Courses From The CE Shop?

Enroll in our Pre-Licensing program now to get your career started and begin connecting your neighbors 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 real estate-related in the Mountain West?Join the Mountain West Real Estate Facebook Group!

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