According to a forecast from Realtor.com, metro Denver's home sales could slow significantly next year, but home price gains should hold steady. “Despite the anticipated slowdown in sales, the Denver housing market remains on solid footing,” said Danielle Hale, chief economist with Realtor.com. “Repeat buyers are likely to drive up the median price of homes in Denver as the mix shifts away from entry-level purchases.”
Realtor.com is calling for a 6.7-percent decline in home sales in metro Denver next year, coming on the heels of a 3-percent gain this year. Despite fewer homes being sold, Hale predicts the median price of a home sold in Denver next year will rise 6.8 percent.
Hale notes that households under the age of 34, the prime market for entry-level properties, is on the decline in metro Denver, while households comprised of move-up buyers aged 35 to 44 and 45 to 54 is expected to grow 5.2 percent and 7.2 percent respectively.
More buyers in the “move-up” category, who have built up equity after years of strong gains, will remain active, while more entry-level buyers will get sidelined because of higher borrowing costs. That is what will allow home prices to rise as sales slow.
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