2020 Market Predictions: How Rough Will the Waters Be?

In 2020, will you be holding onto your boat for dear life or will the waters calm? Here’s what we predict.

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The new year is almost here, which means it’s time to announce our predictions for the 2020 real estate market. Today we’ll be equating our market conditions to the danger rating of whitewater rapids. To get a sense of the scale, a 5 is when the water is extremely treacherous and a 0 is when the water is stagnant.

For nearly the last decade, our real estate waters have been close to a 5. We were constantly adjusting, constantly paddling, and constantly in fear of what would happen next. Things were crazy ⁠— I even sold a house for $100,000 over market price at one point! 

We’re no longer in dangerous rapids where buyers and sellers are living in chaos.

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Now, however, our waters are more like a 2 or a 3. Costs have come down quite a bit, which means there aren’t as many multiple-offer situations going around anymore. With less dangerous waters, buyers and sellers have more time to think about their strategies and adjust accordingly. Offers are sitting around asking price or slightly below, and appraised values are very reasonable. 

This is how a normal market typically is, and it’s exactly what we’re heading toward. We’re still going down the river and seeing home values appreciate, but we’re no longer in dangerous rapids where buyers and sellers are living in chaos.

Essentially, 2020 looks like a year of stabilization for the market. If you have any questions or would like more information about the market, feel free to reach out to us. We look forward to hearing from you soon.

Why Our Market Is More of a Mountain Than a Bubble

Our market is more like a mountain than a bubble. Here’s what I mean by that.

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Is our real estate market in a bubble that’s eventually going to burst just like it did a decade ago?

Fortunately, no. Instead of a bubble, imagine that our market is more like a mountain. Home values have been steadily increasing for a while now, but once they get to the top of the mountain, they’ll drop off a bit before rising again.

In my view, this is because buyers don’t get qualified for mortgage loans as easily anymore. In fact, one of the most challenging parts of buying a home is first getting qualified for a loan. Everything else about the home buying process is fun, but getting a loan isn’t easy. This means buyers who get approved for loans aren’t defaulting, foreclosing, or short-selling anymore. 

If you’re thinking of buying real estate, don’t let the rumors of an impending crash hold you back.

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Our market is a mountain, and that mountain is growing. Will prices eventually drop off in a few years? Yes—inventory will increase to the point where buyers will have more than enough homes to choose from and we’ll transition into more of a buyer’s market.

So if you’re thinking of buying real estate, don’t let the rumors of an impending crash hold you back. As I always say, it’s better to buy real estate and wait rather than wait to buy real estate.

If you have any more questions about this topic or you’d like to start your home buying journey, don’t hesitate to reach out to me. I’d love to help you.

Check Out These Expert Market Predictions

What’s happening now in our local real estate market, and how will things play out through the rest of this year? Find out in today’s message.

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Now that we’ve entered the new year, we’d like to take a moment and share our predictions for what lies ahead. Will our market cool off? Will it stay hot? Let’s discuss these points and more.

First of all, our team doesn’t anticipate a market slowdown as we progress into 2019. There may be periods of cooling, but we believe conditions will remain hot in general. Why? Well, there’s still not enough inventory to sustain current demand. Builders are selling out more quickly than they can build, and there are fewer resale homes on the market, as well.

I don’t have a crystal ball, but these predictions are my best estimation of what the future of local real estate will hold.

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Beyond the low inventory, interest rates are still historically low. This, along with currently high rental rates, serves as a strong incentive for people to get out in the market and buy.

Of course, I don’t have a crystal ball, but these predictions are my best estimation of what the future of local real estate will hold.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

How Do We Know When We’re at the Market Peak?

Are we at the peak of the market? Not yet, but we won’t know we were at it until it’s behind us.

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Have you ever been hiking and when you think you’re finally at the peak, you’re actually just at a false summit and there is a bit more to climb? If you’re an avid hiker, you know what I mean. Once you’re at that plateau, all you’ve got is a bit more of an incline to get to the top. You’ve done the hard, steep climbing already. That’s what the market is like right now in Denver.

We’ve taken our biggest vertical ascent already and are now at the point where we are inching up until we get to the peak. I think it will be another four or five years before we get there, but we won’t see that sharp appreciation that we’ve been seeing for the last few years.

This makes now a great time to consider selling. In my opinion, we don’t have too much more room for growth. The properties that are coming on the market right now are the properties that sellers have been meticulously preparing as they wait for this moment. These are properties with the best locations and best upgrades, and those sellers are listing now. If your home has an amazing location and tons of upgrades, now is a perfect time to sell high and buy low.

You’ll never know that you’re at the peak of the market while you’re in the moment, but you certainly will know when you’re off of it and you don’t want to be behind it. I believe in my heart that we are past the biggest jumps in appreciation in this market and from here on out, appreciation will be much slower. 

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You don’t want to be behind the peak.

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If you’d like to discuss this topic further or if you are interested in taking advantage of the market, give me a call or send me an email. I would love to hear from you.

Have You Taken Your Green Photos Yet?

It’s important to have photos of your home that were taken when the landscape was green and lush. We’re offering this to you for free.

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Selling your home? Click here for a FREE Home Price Evaluation 
Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

Whether you are selling in the dead of winter or during the dog days of summer, having photos of your home’s exterior filled with green color is important.

That’s why we are excited to announce a new program that we are starting to help potential sellers capture their home’s outer beauty in its best light.

It’s never too early to start preparing your home for sale. Even if you don’t plan on selling until next spring, we would still like to help out. We want to offer you a complimentary service where we will come out to take some great, green photographs of your home.

We want you to be ready to go when the spring market hits, even if the snowfall is lagging behind. Photos of homes with snow everywhere are just not as effective as green photos.

When we come out to take the photos, we would also love to sit down with you for a complimentary consultation. This is where we will go through everything you should be doing to get your home ready for sale the following spring or summer. This will give you plenty of time to prepare and increase your chances of selling for top dollar.

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This will give you plenty of time to prepare.

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If you are interested in the free photos, the consultation, or both, give us a call or send us an email. We look forward to hearing from you soon.

An Important Note About Our Market

Buying a home? Click here to perform a full home search
Selling your home? Click here for a FREE Home Price Evaluation 
Call me at 303-974-9471 for a FREE home buying or selling consultation to answer any of your real estate questions.

If you’ve been living in Colorado or are interested in moving here, we’ve got some information to share with you today about the current state of the market that we think you would like to know.

We’re starting to see some changes in the market. Six months ago, we were listing homes every week and getting multiple offers on them. For the last month or so, we’ve been seeing a bit of a slowdown in volume. We’re on the front lines, and we’re seeing our sellers get less traffic and volume as far as showings and offers are concerned.

If you’ve considered selling your home, we are seeing and feeling that we really are at the peak of the market right now. If you want to sell your home, get some solid advice, or a market analysis, give us a call. We don’t want you to wait too long to make a decision and be unable to take advantage of these conditions.

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We're at the peak of the market.

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If you have any questions for us or you’re thinking about buying or selling, give us a call or send us an email. We look forward to hearing from you.

Booming Market: Capitalize on Low Inventory, Appreciation and New Home Construction!

There are many great Denver area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (303) 523-4364 for a FREE home buying or selling consultation to answer any of your real estate questions.

Booming Market: Capitalize on Low Inventory, Appreciation and New Home Construction!

A common question that my clients have been bringing up is whether or not they should buy now due to the current appreciating, seller’s market. My answer to them is always yes – when you combine the factors of low inventory, our booming economy, appreciation and active home builders, you create a perfect storm for investing.

Home builders spend millions of dollars investing in areas and neighborhoods; they don’t build with low expectations of their return. They also are building to make up for the lack of new inventory! You are also seeing new commercial buildings and small businesses rising up all over Colorado – it’s booming! However new construction is not the only category that is being effected by the low inventory. There are actually more homes under contract then there is available inventory!

Appreciation is huge; we are seeing homes in this market increase by 10-20% and the healthy market shows no sign of this stopping. We are in a supply and demand market, not an interest rate or false-lending driven market. Although interest rates are solidly sitting at 3.5%, we are really being pushed by the huge wave of appreciation. Now is the time to capitalize because there is no sign of it slowing down.
To slow appreciation down, more homes will need to come onto the market and that will take time. If more homes come onto the market, it will take time for those homes to sell; this means appreciation will continue! You also don’t to invest in any house in any neighborhood. Be sure to keep location of the property, popularity of the area, and how long you intend to live there.

Your location is essential because you don’t want to face power lines, back up to a busy road or commercial buildings and you don’t want a small backyard with little practical space. You also want to live in a popular area like the Highlands, the Knolls or the Baker area in Denver. Those areas are appreciating quickly! Most investments work the best in the long-term, so duration is also essential. By planning out a 5-10 year plan, you will see amazing return! In fact, your house value should double every 15 years in Denver.

If you have any questions about finding a home or putting your home on the market, feel free to call me. I always look forward to our call being the best call of your day!

2014: Our Market Continues to Strengthen!

There are many great Denver area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (303) 523-4364 for a FREE home buying or selling consultation to answer any of your real estate questions.

2014: Our Market Continues to Strengthen!

Today I wanted to give you a snapshot of the past twenty eight days and what the market has done in the first month of 2014. There have been a lot of national projections for 2014, but I wanted to give you more of a local view of what we’re seeing. Last year was great; we finally left the recession by entering into a strong seller’s market. Homes were selling for asking price and even above asking price and the days on market decreased to less than thirty days!

This year is continuing the trend; currently there have been 1,600 homes sold in last thirty days in the greater Denver metropolitan area. That is a differential of 2,200 homes that sold in the first month of 2013. Although few homes have sold this year, our market still continues to improve! To keep you up to date on the current state of the market, I will be updating you month in and month out. I hope I was able to paint a picture for the first thirty days of 2014!

If you have any questions, feel free to reach out to us at the Anderson Group. I look forward to our call being the best call of your day!