Will the housing market crash in Colorado?

will the colorado housing market crash

I spent the first half of April diving deep into my past clients home values and out showing current clients home. When I jumped on google this morning I learnt that the most asked questions was… Will the housing market crash in Colorado?

Well aware that this question has been asked ever since I started in real estate. I still wanted to give my take on what seems to be a ever popular subject.

Sadly, I do not have a crystal ball. However, I can tell you some key points for the 2024 and likely 2025 Colorado real estate market.

So are we crashing or not?

Will the Housing Market Crash in Colorado in 2024?

Remember this is coming from a perspective of my, myself and I, a realtor who is out in the current market actually working.

When it comes to Colorado home values, they have continued to be resilient. Here in Colorado we blossomed through Covid. That time was crazy. I look back at things I posted back then talking about those that were predicting a crash, predicting foreclosures, predicting a steep fall. You know what happened? We had a steep incline in competition and home prices skyrocketed. Some of my clients are sitting on $200,000+ of equity just from 2020 – 2021.

Last year we had crazy interest rate climbs. We were in the 8’s towards the end of the year. From looking at home values for my clients. Most of them still had equity gains last year. I will say they were just slight gains. More in the 1-3% range then that crazy 10%+ range we were seeing. That is much more normal. What I did not see was steep declines. That said a lot to me because my business was down last year with the interest rates and the market was in a gridlock. Buyers didn’t want to take on those high payments and seller didn’t want to lose their very low payments they acquired during the pandemic. All totally understandable.

Colorado home prices continued to prove themselves resilient.

So what about now in 2024?

The past two weeks I have been out with buyers and am seeing some craziness return to the market. We still have low inventory meaning not enough homes for buyers. Buyers that were sitting on the sidelines last year have realized 3% interest rates probably won’t happen again soon. They have jumped back into the market bringing on a new feeding frenzy.

Last week I submitted an offer on a home that had 11 other offers. These offers including appraisal gaps, went up to $50,000 over asking and other crazy things. This was on a old home that needed remodeling int he $600,000 range. This was not a one off sadly.

I certainly don’t want to see our market go back to Pandemic type vigor. I can say competition has returned and no doubt if it continues, even just over the next month or so, home prices will trend up again higher then the 1-3% we were seeing last year.

There was a bit of a delay this Spring for our Spring market, usually we start in late February/March. This year it seemed like April was the magic month. This may mean competition continues into early summer.

What I can say is that I don’t think the Colorado housing market is crashing in 2024. Inventory is still tight, there is pent up buyer demand, homes are selling quickly again and though we have a lot of people moving out of state, we still have enough moving in to keep things sailing.

So when someone says Will the Colorado housing market crash this year? I am going to say it would take a huge disaster for that to happen. Even with another crazy election year upon us. I see home values growing again this year and into 2025.

If you have been sitting on the sidelines waiting for a market crash, you may have priced yourself out of the market. The market will likely crash again at some point, it is cyclical. But, we are seeing a sustained pattern of growth and have since 2012. That is now 14 years of some kind of market growth with a few small bumps along the way.

Let’s talk about this more. I am always open to hearing opinions different then my own 🙂

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