DENVER (KDVR) — Housing prices in the Denver metro are about to increase at a record rate, according to investment bankers.
Goldman Sachs recently released a forecast of the nation’s housing market future. There will be no market crash at the tail end of the record homebuying frenzy that accelerated through the pandemic. Instead, limited inventory will push home prices up 16% by the end of 2022.
If that predicted trend happens in Colorado, the Denver metro’s single home price will reach $651,290 by December 2022.
More likely, prices will go up even further.
This projection assumes 2022 will start with the most recent median home price: $562,000. In the last five years, however, home prices have usually gone up from September to January. The Denver metro area will start Goldman Sachs’s projected growth from a higher price point in January 2022.
Also, the Colorado housing market usually blows past the national trend.
The Denver metro’s housing market has risen faster and further than the national average in the past five years.
Denver metro home prices rose by twice the national rate since 2016.
The U.S. median sales price for a single-family home was 368,000 in the second quarter of 2016. It grew 30% to $485,000 by the same quarter in 2021.
In the same time period, the Denver metro single-family home price went up 61%.