What to expect in 2018 for the metro Denver housing market
Last year, home values appreciated an average of 7% in the Denver metro area. Next year, forecasts are predicting appreciation around 3-5%, depending on the source. Naturally, homes on the low-end of the spectrum (under $300k) are going to see the highest increases, while high-end homes (over $400k, especially $750+) are going to see the lowest increases. What this means for real estate investors is to price your projects right and don’t bet on a future appreciation. Be conservative with your ARV (after repair value), and price according to recent solds.
2018 Economic Predictions
Wages are expected to increase, property values will increase at a slower rate and gas prices will rise, so says the experts. Overall, the outlook for the American economy is positive. This should mean good things for real estate investors since a lot of the uncertainty of the tax bill is over. Now, people can move forward, which could loosen up the housing market in Denver a bit.
If you want details on the tax bill, this Bigger Pockets blogpost explains it all from the investor perspective.
If you are curious how the bill is predicted to affect property values across the country, this article has a nice graph. Areas with the highest real estate values (New York, Chicago, California and pockets around the country) are likely to see decreases while everywhere else will continue to appreciate.
“The new year stands before us, like a chapter in a book, waiting to be written.
We can help write that story by setting goals.“