I expect the home values to keep rising due to low inventory and strong demand. Even though the interest rates are increasing, the demand is still there and these are still great interest rates to purchase a home. At some point down the road the strong appreciation will begin to level off gradually, but there is a correction being made in the market that should continue into the next couple of years.
I think the home prices in the Denver metro will still rise but at a slower rate than in the first half of the year. With rising interest rates, the ability of people to afford homes at higher price points will be greatly affected. I am also concerned about the strength of the economy and recovery. This recovery has been built on government stimulus money and not on actual gains in the economy. With the unemployment rate still high and the number of jobs being created vs the number of new workers every month we really don't have an increase in jobs. That means there are still a lot of people out there that are not in an improving situation. Let just hope the home prices don't rise to quick to create artificially high prices that could be very bad long term.
Yes and for all the right reasons, strong in-migration, strong job growth, more buyers than sellers (hopefully this will balance out). Interest rate rise may effect the first time buyer market, under $300k but all signs point to a strong market with rising prices.
I don't expect home prices to ease off until supply corrects. In MAR-APR earlier this year we were running about 33% of 10-year historical average supply. It's crept up a bit since then, to about 50% of historical 10-year average. Until we see more supply, prices will go up. That is Economics 101... Supply & Demand. I project it will take a year for this to happen. Real Estate cycles also tend to cycle: 5-7 years up and 3-5 years down. We're approximately 2 years into an up cycle.
While noone can predict the future, yes, I do expect home prices to continue to rise in Denver. There is currently what is described as a "shortage of inventory," which allows for the rise in home prices, as there are Buyers available and willing to support this.