As we approach 2024, the Denver real estate market, including sought-after areas like Sunnyside, Northwest Denver, Wheat Ridge, Lakewood, Highlands, and Berkeley, is poised for significant changes. Zillow’s latest predictions offer a glimpse into what buyers, sellers, and investors can expect.
More Homes on the Market
One of the key trends anticipated is an increase in home listings. Homeowners, coming to terms with the reality that mortgage rates are unlikely to drop to the historic lows seen in 2021, are expected to put more homes up for sale. This could be particularly noticeable in neighborhoods like Sunnyside and Berkeley, where demand has been consistently high.
Home Buying Costs Stabilizing
For those looking to buy in areas like Highlands or Northwest Denver, there’s a silver lining. Home buying costs are predicted to level off, with Zillow forecasting a minimal decrease in home values. This stabilization is a welcome shift from the steep price increases seen in recent years and could provide a much-needed breather for buyers.
Rise of Single-Family Rentals
With affordability still a major concern, the market for single-family rentals is likely to grow. Families who find themselves priced out of purchasing a home in areas like Wheat Ridge or Lakewood might turn to rentals as a more viable option. This could also lead to homeowners converting their properties into rental investments, especially if they’re holding onto low mortgage rates.
Increased Urban Rental Demand
In line with trends seen in cities like New York, Denver is expected to experience a surge in rental demand, particularly in urban areas and neighborhoods close to downtown. This could mean more rental options and potentially more competitive pricing, benefiting those looking to rent in central locations.
The New Appeal of Fixer-Uppers
As inventory remains lower than pre-pandemic norms, more buyers, including those in Denver, are predicted to consider homes that need a bit of work. This shift could lead to decreased competition from home flippers, as the higher costs of buying make flipping less lucrative. Expect a rise in DIY home improvements, with new homeowners getting hands-on to turn their properties into dream homes.
AI Revolutionizing Home Searching
Finally, Zillow anticipates that advancements in AI will transform the home shopping and selling journey. From improved listing descriptions to enhanced visual content, these technological innovations could make the process more efficient and user-friendly for buyers, sellers, and real estate agents alike.
As we navigate these changes, the Denver real estate market remains a vibrant and dynamic arena. Whether you’re a first-time buyer looking in Sunnyside, a seller in the Highlands, or an investor eyeing opportunities in Northwest Denver, staying informed and adaptable will be key to success in 2024.
Interested in learning more about how these trends could affect your real estate decisions in Denver? Reach out for personalized advice and insights.