Front Range’s Strongest Markets Overall

The U.S. housing market is somewhat frozen. With a significant number of existing owners locked in mortgages below 6%, most communities have a significant shortage of listings. However, there are optimistic signs the market will thaw. Inflation has been slowing. If the predictions that the Federal Reserve will reduce rates by mid-2024 comes true, mortgage rates will drop.

How much will our markets improve? It’ll vary from city to city. But the encouraging news is many of our communities are considered the strongest in the nation. U.S. News & World Report’s latest analysis of the “hottest” housing markets is based on their metropolitan statistical areas (MSA) of diverse data points on a scale of cold to hot (1-100). 

Among the top twenty metro areas, four are right along the Front Range:

(The lowest MSA was 55. Hawaii and California cities were listed at the bottom of the list.)

Even during the COVID-19 pandemic, these Front Range markets experienced a surge in demand fueled by notably low mortgage rates and the preference for additional living space. While more workers returned to offices and the mortgage rates rose, these communities attracted the greatest interest from buyers. One reason is they offer similar urban amenities without the drawbacks of mega metropolises like New York, Los Angeles, or Chicago.

What are the qualities of a strong market?

Let’s take Denver as an example. Ranked #1 by U.S. News & World Report, the Mile High City has a mix of strengths:

• Low unemployment and strong job market.
• Few mortgage delinquencies.
• Low rental vacancy rates for investors.
• A positive ratio of building permits-to-job growth. 

Ft. Collins, Greeley, and Colorado Springs all have similar trends to Denver. Because they experience a high buyer demand compared to the rest of the nation, their low housing supply will continue to reinforce their home prices. They are experiencing pockets of “frenzied competition” this spring.

Home prices along the Front Range tend to rise in tandem with the community’s proximity to the Rocky Mountains, especially for buyers seeking a convenient location to the foothills/backcountry with mountain views and city amenities. Even if the housing market has become more expensive than just a few years ago, it’s still more affordable than the major metro areas along the U.S. coasts.

We advise buyers and sellers to start chatting with your RE/MAX Alliance Broker rather than solely relying on online research and headlines. The sooner you are well-informed and prepared, the sooner you can enter the market at the right time for you.

Source: realestate.usnews.com