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Colorado Home Prices Overvalued and Won’t Be Decreasing According to Experts

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Colorado Home Prices Overvalued and Won’t Be Decreasing According to Experts

May 18
19:30 2022
Colorado Home Prices Overvalued and Won’t Be Decreasing According to Experts
Colorado has witnessed a dramatic rise in housing prices, leaving many first time shoppers frustrated. Buying a home is one of the largest life investments and committing to it is quite hard. But it’s even worse now with prices skyrocketing and bidding wars continuing in the Colorado housing market.

Littleton, CO – May 18, 2022 – A recent article on Fortune.com exposed the true facts of the housing market. The article highlighted that the front range is set to witness continued inflation of home values in the foreseeable future. 

CoreLogic, a California-based real estate research company, provided a complete assessment of 400 metropolitan areas, including 6 Colorado markets – Denver, Fort Collins, Boulder, Greeley, Colorado Springs, and Pueblo. The assessment ranked the probability of home prices dropping over the coming year in these areas. Colorado Springs and Pueblo ranked low, showing a 10-20% chance, while Denver, Fort Collins, Boulder, and Greeley ranked even lower with a 0-10% chance. According to CoreLogic’s rates on home prices in America’s largest housing markets, all six cities were overvalued. 

There are plenty of factors making this different from the 2008 housing crash. Cache Nies, a northern Colorado mortgage expert from Ticket Mortgage, stated that one of the contributing factors is the strict lending guidelines that have been put in place since the previous session. Risky lending of subprime loans has been reduced substantially, and several regulations have been adopted to prevent a repeat of the 2008 mortgage crisis. Cache Nies shared a surprising statistic that showed 90% of homes in the US have over 10% equity while over 40% of homes are owned free and clear.

Another factor is lack of supply; simple economics shows that if the supply is constrained and the demand increases or remains constant, the prices will go up. Cache Nies made sense of this by stating that currently, a surplus of 2 million homes is needed to meet the demand in the US. So it’s expected for appreciation to continue even with the rising interest rates. He advised clients to take advantage of this appreciation instead of waiting for the housing market to crash like in 2009. 

When asked about the report, Laura Hughes Schneidewind from EXP Realty in Boulder said she doesn’t think there will be a decline in Colorado home prices anytime soon. This is mainly because there are more available buyers than homes due to the decrease of new construction homes stemming from 2009. She added that with many tech jobs coming into Colorado, like Amazon, Google, and Microsoft, the Colorado market is set to experience an influx of highly educated buyers. 

Lorian DuCharme from Forever Charmed Homes and EXIT Realty Pikes Peak also mentioned that she doesn’t think home prices will decline with higher mortgage rates or have a dramatic equity growth. She gave an example of the Colorado Springs market that has averaged about 17% growth in equity, with the average home price being around $450,000. She concluded that the home prices wouldn’t drop, at least not in Colorado Springs. Instead, houses will stay on the market longer than three days until a qualified buyer can purchase them. 

About Ticket Mortgage

Ticket Mortgage is a local mortgage lender based in Littleton, Colorado that serves the lending needs of home buyers, investors and real estate professionals.

Media Contact
Company Name: Ticket Mortgage
Contact Person: Nick Carpenter
Email: Send Email
Phone: 760-851-6706
Address:295 E 29th St STE 150
City: Loveland
State: CO 80537
Country: United States
Website: http://ticketmortgage.com