As we head into a new year and new decade, it’s interesting to me how much is actually staying the same. There will always be change and an evolving market, but when I look back over the past few years, the predictions for 2020 are a bit like Groundhog Day.
So, what will remain the same as years past?
Low Inventory Levels
Colorado migration is increasing. And with new construction unable to meet demand, there will continue to be a shortage of homes for sale. This leads to a continued sellers’ market. In some areas the market will stabilize, and buyers will gain better grounds to negotiate. But overall, less supply with heightened demand are the ingredients for a sellers’ market.
Having said that, affordability issues will keep aggressive appreciation at bay. It’s been slowly creeping down over the years, and I anticipate that will continue. I expect year over year appreciation to be under 5%. Note: Although appreciation is slowly dropping, it’s still positive – and home ownership in Colorado can still lead to wealth building. After all, ownership is usually still better than renting.
Low Interest Rates
This may be the biggest surprise. As real estate agents, it seems like every year we are told to prepare for the rise in interest rates. Just when we think rates will begin creeping up, they come right back down. There are many factors that affect mortgage interest rates. Although I don’t think we’ll see all-time lows, I think the real estate market will benefit from stable low rates AGAIN in 2020. Some homeowners may even have the opportunity to refinance to a lower rate from just one year ago. Reach out to our trusted 8z Mortgage lender to see how current interest rates can benefit you on a purchase, investment, or a re-financing.
A few things that will change or evolve further in 2020:
iBuyers are not a fad, they’re here for the long haul. As a new way of selling a home, iBuyers represented about 3% of all home sales in 2019. Now 3% may not sound like a lot, but I expect that to grow substantially in 2020 as the iBuyer platforms expand into more expensive markets. Want to know what an iBuyer offer would look like for your current home? Call or email me. We have an exclusive and comprehensive iBuyer optimizer program at 8z Real Estate that collects and compares multiple iBuyer offers for you. There is no cost and no obligation – just great firsthand knowledge.
Days on Market
I mentioned above that the Colorado real estate market will continue to appreciate in 2020, but it’s going to do so at a slower pace. Some areas will still see multiple offers, and the number of days to an offer at less than a week. However, this will be limited to specific neighborhoods in high demand, as well as homes with very strategic pricing, staging and marketing (all of which I can assist you with). Many areas will see the number of days to sell go up by a few weeks. This isn’t anything to worry about, but it is something to anticipate and prepare for when pricing and selling your home. Call or email me should you be interested in selling, so I can help advise you on how to maximize the value in your neighborhood.
2020 is going to be another great year of real estate growth. I look forward to being your trusted real estate advisor as we forge into a new decade of real estate opportunities.
A Refreshing Look at the Question “What is my House Worth?”
Let’s take a look at some of the stats for our area to get a better idea of what is going on in the local housing market!
In El Paso County for December 2019, the average sales price* was:
- $329,937 for Single Family Homes (up by 8.53% from 1 year ago)
- $230,000 for Condos/Townhomes (up by 9.5% from 1 year ago)
I have access to detailed stats across Colorado and can help you find out the worth of your property any time. I can also help you determine what your home is worth even if it’s in a different area. As always, I am here for you. If it’s time for you to buy or sell, let’s talk.
*Median sales price based on a six-month moving average