Your Castle Real Estate

Your Castle Logo
CONTACT US
(303) 962-4272
Buy Property | Sell Property | Search
  • Home
  • Our Team
    • Find an Agent
  • About Us
    • About Your Castle
    • Staff
    • Offices
    • Cities
    • Alliance Partners
  • Relocation
  • Services
    • Buyer’s Guide – Denver Homes For Sale
    • Sellers’ Guide- Your Castle Denver Realtor
    • Denver Real Estate Investing
  • Media
    • Newsletter/Blog
    • Your Castle Gives – Residential Real Estate
  • Training
    • Upcoming Courses
    • Past Courses
  • Contact
  • Careers
    GO

    Real Estate News – 2019 Predictions!

    January 10, 2019 By Your Castle Real Estate Leave a Comment

    As the first full week of the new year is underway, it’s the perfect time to peer into our crystal ball and forecast the 2019 real estate market. At the end 2018, we saw more than one statistic saying the market is beginning to slow down. What does that mean for 2019, and how do we feel about the future of the real estate market?

    Average Home Price:

    The average price of a home (single-family, condo, and townhome) in metro Denver increased another 4.0 percent in 2018, finishing the year at $454,248. We predict 2019 will show a slower year for our housing market with an average price increase of 4-7 percent. This is because the number one driver of home price change is the amount of inventory on the market, and current inventory remains historically low.

    In 2007, during the last downturn we had a peak of 31,000 properties on the market so prices DROPPED 14 percent, while in 2018 we averaged fewer than 11,000 properties on the market so prices ROSE 4.0 percent. While inventory numbers are still historically low, this increase (up about 4,000 from 2017) is still enough to slow the strong price appreciation Denver has been experiencing.

    It’s simple supply/demand. Unless the supply continues to increase at a quicker rate, there will continue to be upward pressure on prices as demand continues to outstrip supply. Where will the new supply of home inventory come from?

    It won’t be bank-owned properties or short sales – our metro Denver economy is as strong as it’s ever been and a strong economy means almost no properties on the market. The additional supply will eventually come from homeowners who finally decide to start moving again. However, when this will happen is anyone’s guess.

    Part of the issue is an interesting Catch 22 where many potential sellers evaluate the market and think they can’t find their dream home because of the lack of inventory – therefore they don’t put their homes on the market – thereby contributing to the very lack of inventory that stopped them from moving in the first place. As new builds and housing units continue to increase, we expect house price appreciation to slow down just a little bit in the next year.

    Number of Homes Sold:

    There was a very small decrease in the number of single-family homes sold in 2018 vs. 2017 of just -2.4 percent. So while prices rose strongly, the number of sales decreased, likely due to the Denver’s slower rate of population growth this year (only 1.4 percent!) .

    We do not foresee any dramatic change in 2019. Expect a 2-3 percent increase in 2019 home sales, if only because the Denver metro population still rising over one percent per year and all these people need to live somewhere!

    The Investor Market:

    The real estate investor market will remain strong with very little change in the outlook.

    The fix and flip market will continue to be profitable for those who can find underpriced homes to buy and repair. They are out there but it takes tools, patience, and work to find them. Once you get a house fixed up, selling is the easy part due to the lack of competing inventory.

    The buy-and-hold market will continue to be extremely generous to long-term investors. Vacancy rates are still near record lows and rents continue to increase, up over 40 percent in the past 5 years! It’s not difficult to buy a rental property in today’s environment and put it on the path to be paid off in 12-13 years.

    For building long-term wealth it’s tough to compete with rental property ownership. That’s the one thing that never changes!

     

    What do you predict will happen in 2019? What trends have you seen that might be different in 2019 than in past years? What do you hope will happen in 2019? Let us know!

    If you are interested in learning more, sign up for one of our free classes that we offer on RE Trends and more.

    Filed Under: Journal, Real Estate

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Recent Posts

    • Your Castle Gives Over $150K to Charity
    • How has the Recession Affected Rent?
    • The Colorado Springs Market is on Fire
    • Tech Companies are Relocating to Denver
    • What will Happen to Real Estate in 2021?
    • What is Refinancing?
    • DECEMBER 2020 / JANUARY 2021 NEWSLETTER
    • Mentally Strong People: The 13 Things They Avoid
    • How Much Mortgage can I Afford?
    • 71st Largest Private Company in the Denver-Area
    • How to Start Investing in Denver Real Estate
    • What do I need to qualify for a loan?
    • November/December 2020 Newsletter
    • How to Finance your Real Estate Investment
    • Home Sales are Way Up
    • Is it a good idea to invest in real estate?
    Your Castle Real Estate - 2755 S. Locust St. Suite 150 Denver, CO 80222
    Agent Login
    YourCastle.com uses cookies to customize your experience. Learn about cookies and our Privacy Policy here.
    IDX Logo The content relating to real estate for sale in this Web site comes in part from the Internet Data eXchange (IDX) program of METROLIST, INC., DBA RECOLORADO © Real estate listings held by brokers other than {{{account_mls_firm_nm}}} are marked with the IDX Logo. This information is being provided for the consumer's personal, non-commercial use and may not be used for any other purpose. All information subject to change and should be independently verified. See Disclaimer
    IDX Logo The real estate listing information and related content displayed on this site is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.
    This information and related content is deemed reliable but is not guaranteed accurate by the Pikes Peak REALTOR® Services Corp.
    IDX Logo Property listing data provided by Summit County multiple listing service. Information last updated: {{{last_update_dt}}}. All information provided is deemed reliable but is not guaranteed and should be independently verified. The advertisements herein are merely indications to bid and are not offers to sell which may be accepted. All properties are subject to prior sale or withdrawal. The sale offering is made subject to errors, omissions, change of price, prior sale or withdrawal without notice.
    Information source: Information and Real Estate Services, LLC. Provided for limited non-commercial use only under IRES Rules. © Copyright IRES.
    Information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information deemed reliable but not guaranteed by the MLS.
    Copyright © {{{current_year}}} Pueblo Association of Realtors. All rights reserved. The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange Program of Pueblo Association of Realtors. Real estate listings held by IDX Brokerage firms other than {{{account_mls_firm_nm}}} are marked with the Internet Data Exchange logo or the Internet Data Exchange thumbnail logo and detailed information about them includes the name of the listing Brokers. Information provided is deemed reliable but not guaranteed.
    Listing Data last updated: January 16, 2021 19:00 MST
    Service by Buying Buddy IDX CRM
    Equal Housing
    Blue Fire Group    Real Estate Websites
    © 2021 Copyright
    Your Castle Real Estate
    LAC
    My Buying Buddy    Powered By MyBuyingBuddy ®