The Centennial state has a unique real estate market that is doing very well for a while now, mostly due to many people relocating here and the strong demand from employers. These trends will continue until the end of this year, in all three major real estate markets: the Front Range, the mountain resorts and the rest of the areas.
They are not expected to perform radically different in the next months and nor in the next year.
In Front Range Residential, houses below 500k are expected to continue to see small appreciation, while those above 500k will slow. The luxury market will not do so well, with prices possibly declining and inventory rising.
In most mountain communities, properties below 1m is very hot due to many people`s preference to live in mountain communities. There are high costs of building here, while inventory is very low, considering that more homes are used for short-term rentals. On the high end, there seems to be appreciation.
As about the other areas in the state (the more rural areas), they are expected to continue to stagnate.
The commercial real estate seems more interesting. Multifamily sees a moderation in the rent growth, and high end properties provide incentives to entice people. The industrial market is influenced by marijuana related properties taking up, while office market will remain strong, with properties remaining in high demand due to the continued relocation of companies in Colorado.
If you are interested in buying real estate in Colorado, Tom Ullrich – RE/MAX will be happy to share his thoughts with you, and find you the best home to fit your preferences and budget.