After a hot year for homebuying in 2021, metro Denver could set the scene for more record demand catapulting appreciation and sale prices into 2022, reports The Denver Post. Though experts predict stable market activity in the Denver market for the year ahead, a possible housing bubble could ease appreciation rates but maintain high demand.
Home prices are still expected to rise in 2022 despite an increase in housing construction and builder sentiment throughout the past year. With more supply-chain obstacles on the horizon and ever-growing demand from prospective buyers, housing shortages could drive up competition and keep prices at record highs.
“I don’t see any big dynamic shifts coming,” says Ryan Carter, president of 8z Real Estate. “The rate of appreciation may soften slightly, and it would be a lot healthier for the market to not continue to see high double-digit growth.”
Barry Willmarth, Willmarth Real Estate Services owner, agrees. “My initial thought for 2022, is that home prices will continue to rise but the appreciation rate will ease despite inflationary pressure, as buyers recognize the reality of a possible bubble.”
Nick DiPasquale, West + Main broker, predicts home prices will continue to rise.
“For the most part, 2022 should see a similar trajectory with a potential for an even wilder ride than we have seen over the past two years.”
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