The northern Colorado real estate market continues to be one of the strongest in the country. Demand for homes, fueled by job growth, continues to outpace supply. Regional job growth in 2017, a leading indicator of the real estate market, was one of the strongest in the last 10 years. Despite more construction, supply has not kept up with demand. The northern Colorado market continues to have less than 3 months of housing supply when 6 months is considered a balanced market.
Some thoughts about northern Colorado spring market
- It will be all about price range and condition in 2018 so sellers should make efforts to be shiny and bright to get the best price and the fastest sale.
- Will we see some signs of slowing this year because of interest rates? We’ll see, but buyers should probably get serious. The Fed is predicting a number of interest rate hikes in 2018. 5% interest rates are right around the corner.Interest Rates Climb.
- If you’re thinking of selling the family house in the next few years, consider doing it sooner than later. We’ve had a comfortable average of 5% appreciation a year consistently over the last 40 years. Some up, some down. We’ve had high appreciation rates the last few years. How long can it continue?
Most prognosticators have said the northern Colorado real estate will continue its march to higher prices, which continues to outpace household incomes. If interest rates do rise this year, housing affordability becomes an even bigger issue than it is now.
You live in northern CO, don’t expect prices to fall, but watch the market carefully. See what houses are selling for and how quickly they sell. While we can’t predict what will happen in the real estate market, barring any catastrophes, there will be a steady but possibly slower appreciation over the next few years. Make your decisions accordingly!