With apologies to This Is Spinal Tap, on a scale of 1 to 10, the Front Range housing market is still an 11 in terms of buying activity. However, one aspect of the market is relatively normal: Real estate is hyper-localized. Which means that any given neighborhood in any given month can see fluctuations as well as opportunities for persistent shoppers.
Here’s how local markets are faring according to the Colorado Association of Realtors® (CAR®).
Boulder/Broomfield
Boulder and Broomfield Counties saw 22 and 17 percent appreciation respectively in 2021. Most neighborhoods saw bidding wars and over-asking price bids, with some houses selling in a matter of hours or days. The tragic Marshall Fire only added to the frenzy, creating an even tighter market for rentals and sales as more than 1,000 families were suddenly in need of housing.
Remote work has further increased demand for the limited inventory in Boulder and Broomfield. Pre-Covid, many of the area’s homes were being purchased by tech sector employees who worked locally. Today, many homes are supporting two work-at-home employees whose employers are often in a different state. The migration into Colorado has driven up home values while placing a premium on indoor and outdoor living spaces. The Boulder/Broomfield corridor is a great fit for remote workers and prices reflect it. Expect high demand, low inventory, and rising prices to continue through 2022, though appreciation should slow compared to 2021.
Denver County
Single-family homes and condos/townhomes set a record in December 2021 for lowest inventory ever. Months’ supply of homes was just 0.2 months for single-family and 0.4 for condos/townhomes in December. According to CAR, each of the last three Decembers set records for low inventory, indicating just how difficult the Denver market has been for shoppers. In each of the previous three years, inventory started to increase in February and March, with peak inventory expected in May through September.
Golden/Arvada
Jefferson County saw inventory of just 167 single-family homes on the market at year-end, a 50 percent drop from this time last year. Median sales price for single-family homes is now $627,000.
Condos/townhomes saw inventory drop by 59 percent year over year, with the median sales price rising to $381,000. With so few homes for sale, new listings are often off the market in a matter of days, usually above asking price. Expect the trend to continue in 2022.
Fort Collins
CAR reports a median year-end price of $559,550, a 25 percent increase from December 2020. Inventory levels at year-end were 45 percent lower than the previous year, the lowest levels since data has been recorded. There was a 15-day supply of homes on the market to start 2022, and the forecast for this year mirrors last year, with a key difference: Interest rates and inflation are on the rise, reducing purchasing power and potentially easing the competitive frenzy around new homes that hit the market.