DENVER (KDVR) — Nobody agrees on what’s going to happen with Colorado’s housing market in the next year. Local predictions said the Denver area market will grow slower than most cities if it grows at all.
Nationally, bankers and real estate firms disagree widely on how much the housing market will rise or fall next year as high interest rates brought a two-year homebuying frenzy to a halt. Redfin economist Taylor Marr said Sun Belt cities that have seen homebuying skyrocket during the pandemic, such as Denver, are more likely to see home values come back down from inflated peaks.
Firms that think prices will climb also believe Denver’s will climb more slowly than other cities in the country or cities in Colorado.
Realtor.com is one of a handful of national firms predicting home prices will keep climbing in 2023. The Denver-Aurora-Lakewood metro’s prices will rise more slowly than most.
Realtor.com’s city-level predictions said the Denver area’s home prices will rise 4.2% next year, putting it near the bottom fourth of national markets for wage growth. Colorado Springs homes will rise 7%, nearer to the top of national growth.
Norada Real Estate Investments also predicts Denver home price growth will be slower than other Colorado metros.
Norada predicts a 1.2% growth in Denver home prices from July 2022 to July 2023. Greeley, Grand Junction, Colorado Springs and Pueblo will each see home prices climb higher.