Generally speaking, it is challenging to predict what will occur with the real estate market in Colorado, it seems very likely that there will be steady gains to be had in the year of 2024. This is especially true in and around the City of Denver. It does not matter if you invest through the purchase and selling of homes or you have a desire to invest in rental property in the New Year, you are sure to experience massive returns on your investments. In this guide, we will offer our predictions for real estate endeavors in 2024.

2024 Real Estate Investing Guide

High Demand, Lower Supply

Homes are in high demand from Colorado investors, but in low demand. The ongoing shortage of supply will ensure that the housing market remains highly competitive through the end of 2023 and well into the year of 2024. A recent measurement of real estate listings confirmed that there are far fewer homes within the State of Colorado for sale than there was just one year ago. In Denver alone, listings declined over 17% in the past 52 weeks.

Approximately 8 months ago, there was an increase in new home construction all throughout the nation. Despite this, the area market in the state is not what you would call “buyer-friendly”.

The truth is, those who land homes in the competitive market can expect to reap massive rewards. You will have your share of competition, yes, but once you have your hands on a property, it will continue to be sought after. This is especially true in neighborhoods that are the most sought after – with Denver’s neighborhoods being among the most popular in this category.

Slow But Consistent Price Growth

In the metro statistical area of Denver-Aurora, the average price for a home is right at about $609,000. This is true despite price declines that have occurred over the past few months. This trend was seen across the nation, as a whole.

Recent data has shown that the value of homes is starting to rise. According to data derived from analysts in the industry, it has been determined that this slow but consistent price growth will continue throughout the year of 2024. This stems from the fact that the supply of the homes that are actually for sale is quite limited. By August of 2024, home values in and around the City of Denver alone are expected to increase 3.6%.

In the past, pricing of homes that increase too fast have resulted in the development of affordability problems for buyers who had an interest. The good news is with this slow, steady price increase the slow appreciation will assist in keeping pace with the wages that interested parties make. As a result, it makes it more affordable. In other words, you could purchase property now as a real estate investor and then flip the property for a larger amount.

By the time you conclude the projects necessary to flip the home, the home value will increase to the point of affordability for those that have an interest in purchasing a home.

Increased Pace on Home Sales

Throughout Colorado – and in most other states – the real estate market has been in a cooling period. This is because of the fact that mortgage rates experienced a higher than double increase. While this is typically acceptable in the real estate market, it was a bit unusual because it happened when everything on the market increased in price.

More people were trying to adjust their budgets to the new expenses and simply survive and fewer were interested in purchasing a home.

In recent months, acceleration is occurring throughout the State of Colorado in the real estate market. The average length of time that a home is on the market is drastically declining. In short, homes put up for sale are starting to sell much faster. All those people who had to adjust to increased prices have adjusted and are re-entering the market to purchase homes. As a result, sales are happening more quickly than ever before.

While it is true that the real estate market is typically always slow in January, after that, you are sure to see properties selling fast.

As a real estate investor, it is essential that you prepare yourself to move fast when the right properties for you hit the market.

Lower Mortgage Rates

In the past year or so, mortgage rates have been quite high. When the Treasury yields rose, the interest rates on mortgages reached the highest levels, ever.

In September of 2023, the interest rate increased to 7.41%, which was the highest in 23 years. The highest jumbo rate also occurred at 7.34%. The last highest jumbo rate occurred in the year of 2011. Approval to obtain a mortgage also hit its lowest.

Predictions are now being made that the mortgage rate will likely hit the level of 5.4% by the last quarter in the year of 2024. Even if home prices increase, buyers will be able to get approved for a mortgage easier in the year of 2024 and they will pay less for their home with that mortgage.

This means that this is an excellent time for real estate investors to make their move.

A Market for Returning Sellers

Sellers that sell homes took the sidelines in the past year. In 2024, the real estate market will likely prove to be highly appealing to baby boomers who want to downsize. This is occurring because this group of people want to reduce their expenses each month so that they may free up their cash for their retirement, and other goals. In addition to this, now that boomers are getting older, they are in search of homes that require less maintenance and upkeep.

This could mean that a whopping 30 million housing units are added to the market in 2024 and beyond.

This – coupled with the fact that inflation is easing and mortgage rates are stabilizing – will also bring back investors. It is in your best interest to jump on the market when sellers return as this will help you maximize your profits when you elect to sell what you have purchased.

Turnkey Investment Property

Turnkey Rental Properties Increase in Availability

If you are an investor that seeks to indulge in the purchase of rental properties, you should consider turnkey rental properties as these are steadily increasing in availability and will continue to increase in availability throughout the year of 2024.

Referred to as a “seamless” means of entering the real estate market, these properties are renovated, furnished, and completely ready for tenants. They do not require any type of rehabilitation.

As more turnkey rentals become available, you can immediately start making money as an investor.

These promise to be a huge hit among real estate rental property investors that lack the time to oversee the operations of their properties. Just remember, enlist a property management team to optimize your earnings on the investment.

Property Management Teams Reduce Tenant Issues

In the past, if you had rentals, you faced many significant risks as the result of tenant issues. The good news is, this promises to be eliminated throughout the year of 2024.

This is because of the fact that property management teams are now emerging that aid in reducing and even eliminating all of these risks. Examples of services offered now include tenant screening, background checks, inquiries, lease documentation, lease renewals, and maintenance concerns.

By enlisting the assistance of a property management team, you will find that you experience fewer issues, vacancies, and more earnings on your rental property investments. In addition to this, you will discover that you are completely shielded from the challenges that occur with rental property ownership.

Capitalizing on the Strength of the Market

In recent years, the Colorado real estate market has grown stronger. In 2024, you can capitalize on that strength. By investing now, you can experience short-term gains. You can also experience appreciation on a long-term basis.

The best strategy is to invest in properties that are selected by local property management companies. These have been analyzed and have undergone extensive research for optimal profits. These are located in prime locations. The areas have a strong demand and the locations have a high rate of economic vitality and a consistently growing population.

Contact Us Today

If you are a real estate investor or a rental property investor, it is in your best interest to tap into the thriving market that is available within the State of Colorado. The state offers a highly vibrant economy, a diverse level of job opportunities to residents, and a lifestyle that is highly desirable. We here at Pioneer Property Management can assist you with your real estate endeavors. We have public listings, private listings, and other extensive property management services. We guarantee you will experience success in all of your real estate market endeavors. For more information, contact us today by calling: 720-839-7482

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