With a new year comes a new housing season. If you are one of many prospective buyers, sellers, and investors interested in Parker, CO, real estate, you want to know what to expect in 2023. Read on for the latest market prices, trends, and forecast for the year to give you a better idea of how to approach the season.
PARKER, CO, HOUSING MARKET FORECAST 2023
Based on current data, experts predict that the Parker, CO, real estate market will continue to see a steady increase in home prices as inventory declines.
Home values increasing
According to the latest report from the Colorado Association of REALTORS®, Douglas County
— which includes Parker — has seen a gradual decrease in home values. The year-to-date average sales price of single-family homes has decreased by 2.7%, sitting at $801,877. Townhomes and condos have also seen a slight decrease in the year-to-date average sales price by 0.4%.
Right now, the real estate market is “stuck” due to low demand, a common occurrence in the winter. As the housing season starts back up in the late spring, however, home prices should climb over the summer before plateauing once again in the fall and winter.
Decreasing interest rates
The current rate for a 30-year fixed mortgage is a little under 7%. What you pay in interest ultimately depends on the lender you decide to work with. It’s generally advised to consult at least three lenders in a given day and choose a rate that works best for you.
The cost of rent will decrease
Similar to the average price of homes for sale, the cost of rent
has decreased slightly. It’s likely the cost of rent will continue to decline based on the rent growth over the past 12 months. Rent reached a peak in the months of June and July in 2022, increasing by about 10%, but it has since then plateaued and begun to decline. Of course, there’s a likelihood that prices will rise again in the summer as people relocate, but for now, the cost of rent is on a steady decline.
Investing indicators will not favor landlords
Landlords interested in turning a profit on rent may want to think twice before investing. As mentioned above, rent is steadily declining and may not see a profitable market until the summer. Even then, a booming rental market isn’t guaranteed. For now, investors may be better off investing in desirable properties like single-family homes, townhomes, and condos.
Positive net population migration
As the 20th largest city in Colorado, Parker is expected to welcome new residents within the coming year. The current population is approximately 62,478, an increase of 6.78% since the 2020 census. The city has an annual growth rate of 2.16%.
With more people migrating to Parker, home buyers and sellers can expect to see a competitive housing market this year.
DOUGLAS COUNTY HOUSING MARKET TRENDS 2023
The housing market is largely affected by a limited housing supply and an ever-growing demand for homes.
How COVID-19 affected the Parker, CO, real estate market
The COVID-19 pandemic
created a chain reaction of effects across Colorado’s real estate market. As lockdowns forced people into their homes, construction workers found themselves out of work, and supply chains were severely cut off by the global effort to contain the virus. Consequently, homes weren’t being built. The limited supply of houses led to skyrocketing prices as buyers competed over properties, especially people who wanted to upgrade their space to accommodate working from home.
Although today’s prices aren’t nearly as high as they were during the height of the pandemic, the market is still reeling from the aftermath. Likely, the market will never see the low prices of the pre-pandemic age again.
PARKER, CO, FORECLOSURE STATISTICS 2023
There are currently 123 foreclosure listings
in Parker, CO, including pre-foreclosures, bank foreclosure homes, sheriff sales, and short sales. The price range of these listings is anywhere between $1,099,000 to $496,765. A majority of these homes are multi-bedroom and multi-bathroom luxury properties with over 1,000 square footage of property.
PARKER, CO, MEDIAN HOME PRICES 2023
The year-to-date median sales price for a single-family home is $685,000
, according to the same report issued by the Colorado Association of REALTORS®. On the other hand, the year-to-date median sales price for townhomes and condos is $490,000. These prices depend on the number of bedrooms and bathrooms, the location, and the square footage of each individual property.
PARKER, CO, REAL ESTATE MARKET: SHOULD YOU INVEST?
Should you invest in Parker real estate? The answer depends on the kind of property type you’re interested in investing in. As it currently stands, apartment rentals aren’t the most profitable on the market, but single-family homes, townhomes, and condos are great investments across the board. Large households with children will largely seek out single-family homes with multiple bedrooms and bathrooms, while smaller families and young couples will set their sights on townhomes and condos.
Consider investing in a condo building or a set of townhomes, especially in desirable Parker neighborhoods. Remember: location is key. If a building has convenient access to transportation and other amenities, it’ll be worth a great deal. People want convenience and exclusivity. These traits distinguish luxury properties from ordinary buildings and homes.
All in all, the Parker, CO, real estate market can expect to see a gradual rise in home values but a steady decline in the cost of rent. It’s a great time for both buyers and sellers to begin preparing for the new season. As the population increases, so will the competition and demand for new homes. Unfortunately, there isn’t enough supply to satisfy the demand, meaning buyers should expect to pay more than the listed price in order to outbid other buyers.
If you’re a young professional or couple looking for a small, temporary residence, renting may be a great option in the coming year. The cost of rent has decreased over the past month and may continue to do so. Keep in mind, however, that competition for apartments may flourish again in the summer. If you’re interested in finding a rental, it’s best to begin immediately.
To learn more about the Parker, CO, real estate market, reach out to The Jarnagin Group
. Voted in the top 1% of real estate agents in the country, The Jarnagin Group is a team of world-class Real Estate Agents committed to providing exceptional service to guarantee their clients' success. Whether you’re looking to buy, sell, or invest, make sure you reach out to them as soon as possible to get started.