For quite some time, Denver has been a top seller’s market in the U.S. Homes in the local area was selling well over the asking, sometimes between $50,000 and $300,000 above asking. As of February 2022, the Fed introduced rigorous interest rates that have halted sales in many once-hot markets nationwide. Some hot seller markets have virtually become stalemates or have become booming buyers’ markets. Nevertheless, Denver is still a strong seller’s market, and homes are still selling fast. Despite the challenging market for buyers, if you can buy a home in Denver, it will be well worth it. Here’s why.
Denver’s Economy is Booming
Currently, Denver has a robust economy. As a matter of fact, it is ranked among the top ten fastest-growing economies in the United States. It has a strong economy primarily due to construction being at an all-time high, plenty of new companies, particularly tech, have moved to the area, and unemployment is very low.
Despite its outstanding performance, inflation and high-interest rates are taking their toll on Denver’s economy, as with other cities nationwide. But, despite this slowdown, Denver remains a strong economy, with employment still strong. Although there is talk about the possibility of a recession in 2023, experts are confident that Denver’s economy will continue to thrive.
Homes Are Much More Affordable Now Than Before
For the past two years, Denver home prices have skyrocketed. This could be because it is a hot spot for jobs and previously ranked as a great place in the U.S. Median home prices reached an unprecedented $660,000, and bidding wars on homes in the area were quite common.
Things are cooling down a bit for hot seller’s markets all over the U.S. But Denver is still undeniably a seller’s market. While the median home price has dropped to approximately $570,000, sellers still have some leverage. But the good news is that this price drop is making housing affordable for some home buyers.
There is still a problem with inventory in this market, however. This means that even though prices of homes have dipped, the competition for them can still drive prices back up. Unfortunately, this will continue to create dilemmas for homebuyers.
Buying a Home Could Yield Big Returns
While trying to buy a home in Denver’s market still has its challenges, the good news is that if a homebuyer can buy a home, the value of the house if they decide to sell it in the future, may be high. Experts anticipate that the booming economy will continue driving home prices steadily. So, home buyers who manage to snag a home in this challenging market will be happy sellers in the future.
Unfortunately, buying a home in this market is the tricky part. There are plenty of homeowners who could purchase homes as move-up homes. But first-time home buyers may still be shut out of this market due to diminishing buying power from high-interest rates. Additionally, competition for lower-priced homes will remain strong, making it challenging for new home buyers to acquire property at an affordable price.
Despite these setbacks, purchasing a home is possible. However, it will take the expertise of outstanding real estate agents to help you find the right home at a great price.
A Knowledgeable Agent Can Help You Find a Good Deal
Denver’s market for homebuyers can be pretty daunting since it is still a strong seller’s market. So, searching for and trying to purchase a home alone may become quite frustrating, especially for new homebuyers. Instead of trying to navigate these challenging times alone, it is ideal for buyers to work with a seasoned real estate agent who has dealt with many shifts in the market and knows how to help buyers find homes at reasonable rates effectively.
An agent can help buyers find homes where they would never think to look. Occasionally, they may even have insider information on homes before they go to market. This will allow buyers to put in offers quickly before the competition finds out about such good deals. They will even know the times of the year when competition for homes in the local area is low so that buyers can purchase easily.
A seasoned agent is a partner in crime in challenging markets like the complex seller’s market in Denver.
Denver Offers Several Tax Credits to Homeowners
Despite the odds, one more good reason to buy a home in Denver is that plenty of tax credits and rebate programs are available to homeowners. Here are some of the most popular ones.
Tax Credits For Owners of Historic Homes
According to a recent report published by Homelight in the winter of 2022, “45 percent of agents surveyed [believe that] first-time buyers will look for smaller or older homes in response to market conditions as another coping strategy [in the current market].” In other words, many first-time homebuyers may have to opt for homes that aren’t their first choice but are older, fixer-uppers for their first home. There is a tax credit for homebuyers who opt to take this option and choose homes on the National Register of Historic Places or the Colorado Register of Historic Properties.
Home Modification Tax Credit
Besides tax credits for historic homes, there are also tax credits available for homeowners with an illness, impairment, or disability who must retrofit their homes to accommodate their impairment. This state tax credit provides upwards of $5,000 to homeowners who need to make these changes to have greater accessibility and independence.
Property Tax Rebate
Denver is a hot spot for many of the country’s retirees. But, like first-time home buyers, they have experienced plenty of challenges in this market. Retirees who manage to find housing in Denver can take advantage of Property Tax, Rent, Heat (PTC) Rebate designed to help with paying property taxes and keeping the heat on in the home.
Housing Tax Credit Program
Unfortunately, the rapid population growth in this city has added another layer of complexity to the challenging housing market. As a result, affordable housing in Denver is a critical need. For developers who want to create affordable housing, this could be a great tax credit program. Developing affordable housing may provide relief for many first-time home buyers and retirees whose buying power is stunted by the recent economic issues.
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