Several states have seen their real estate market benefit dramatically due to the changes the pandemic has brought. Texas and Florida immediately come to mind, but the entire Mountain West has also seen prices rise. This includes Colorado. Wealthy residents of states like California and New York have been investing in properties in states with beautiful natural scenery as a change of pace from the city lifestyle. Few states can match the natural beauty of Colorado. Let’s look at some of the significant trends in the state right now as a cold winter comes to an end and spring spurs major buyer action.
Denver and Boulder Trends
Denver is Colorado’s biggest city, a major hub for commerce and entertainment, a short drive from the Rocky Mountains. Within an hour of Denver is Boulder, a rising tech hub that is one of America’s fastest-growing cities. Let’s look at the trends in these two pivotal Colorado cities.
2021 was a massive year for the Denver real estate market. According to Norada, Denver’s housing market broke a record for home sales in 2021, totaling 63,684. Buyer activity was frantic, and the influx of interest posed a problem. The housing supply in Denver is drastically down, leading to increased competition for the remaining homes. The same Norada report showed that in January 2022, the Denver Metro area only had 1,477 active properties on the market, which is 11,175 fewer than normal. This is driving prices up dramatically.
The median price of a single-family home sold in Denver was $595,000 in January 2022. While this was a slight decrease from December, it was a 16.79% increase from January last year. With inventory low, and winter prices significantly higher than last year, Denver is likely in for a year of price growth and heavy buyer action.
Boulder is a smaller city but has massive buyer interest and a similarly low inventory. This is one of the reasons it has become a highly expensive market. According to Realtor.com, the median listing home price was $905,900 in January 2022. This represented a 14% increase year-over-year. Boulder is known as one of the most scenic cities in America, with ample green space and great hiking. This is one of the primary reasons buyer interest is so high.
Denver and Boulder are two of Colorado’s most desirable markets, and prices are surging. But they aren’t the only areas in Colorado worth keeping an eye on.
Other Key Trends Across Colorado
Colorado has several other real estate markets that similarly benefit from an increase in buyer demand, driving home prices higher and higher. Let’s look at some of the other cities or regions in the state that show us the state of the Colorado market.
Aspen is the primary destination in Colorado for those looking to purchase a vacation home due to the luxury properties and the top-notch skiing. 2021 was a massive year for Aspen. Pitkin County, where Aspen is set, had $4 billion of residential sales recorded in 2021, shattering the record. In 2020, Pitkin had a strong year and only totaled $3.5 billion in sales, according to Klug Properties. Historically low inventory is driving prices up, as the inventory in Aspen was down 70% year-over-year. Homes don’t come cheap in Aspen, with the median sale price totaling $2.95 million, according to Redfin.
Colorado Springs is yet another major market in the city where prices are rising. Colorado Springs is the second-most populous city in the state, located at the foot of the Rocky Mountains. According to a report from Great Colorado Homes, the median sales price in January in Colorado Springs was $445,000, marking a 15.6% increase year-over-year.
It is a great time to be a seller in Colorado. Across the entire state, prices are rising. According to a report by Norada, in January 2022, the median price in the entire Colorado market was $520,000, increasing 16.9% year-over-year. Expect 2022 to be a record-breaking year for prices in Colorado, as inventory remains low and buyer interest remains high.
