2022 brings new opportunities to denver metro’s real estate market
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By Amanda Molitor | Published on December 31, 2021
The New Year has officially begun, and many consumers are looking for a fresh start. Whether that be a new routine, refined goals, or a refreshed mindset, most people have their sights set on something that they want to accomplish in 2022. Perhaps, buying a first home, selling your current home, or investing in a second property is in your future. Here are some market updates from LIV Sotheby’s International Realty (LIV SIR) that will help paint a better picture of where Denver Metro’s real estate market has been and which direction it might be headed this year.
2021 was a productive year for the Denver Metro real estate market. Much of the homebuying momentum that began in 2020 carried through the final months of last year. Looking at market data from LIV SIR’s Monthly Market Report, total sales volume for all price points through November 2021 increased by 14% year to date, even though the number of listings sold decreased slightly by 3%. The reduction in home sales is the result of the housing market returning to its typical buying and selling patterns, in which real estate activity tends to slow during the winter.
Nation Association of REALTORS® Chief Economist, Lawrence Yung, said in a recent presentation given to LIV SIR, “The real estate surge of the pandemic is now over. The market is settling down, but it is settling down above pre-pandemic levels so one can still say that the housing market is running decently even though the housing [boom] is over.”
Within this healthy and less frenzied market, consumers on either side of the closing table have more opportunities to reach their real estate and lifestyle goals. Normal ebbing and flowing of activity in the marketplace may provide more balance to the extreme sellers’ market that Denver Metro has had since the start of 2020.
Intense demand and limited inventory over the past few years has created fierce competition, price appreciation, and an accelerated market pace, which may have discouraged some buyers from entering the marketplace. However, a wave of new inventory could come to buyers’ rescue in the coming months. Factors such as newly built homes entering the market (which also frees up existing homes), the end of the mortgage forbearance program, and the productivity of the approaching spring market may all contribute to a wider selection of available homes for buyers this year.
Sellers, who have widely benefited from appreciating home prices in recent years, can still expect to get a good price for their home in 2022. According to the latest Monthly Market Report from LIV SIR, home prices through November of 2021 rose by 17%, reaching an average sold price of $617,906. Even as more homes enter the marketplace, slightly leveling the playing field, home prices typically rise between the months of February and May, according to data from the Denver Metro Market Review compiled by Megan Aller of First American Title. This combined with the increasing desire to live in Denver Metro, where residents have access to outdoor spaces and a vast array of entertainment options and amenities, ensures that the demand for local homes will not fade.
With the new year comes new opportunities for both buyers and sellers to start their next chapter in the house that feels like home. To learn more about the Denver Metro real estate market and other communities across Colorado or to view LIV Sotheby’s International Realty’s selection of extraordinary residences, visit livsothebysrealty.com.