Colorado Property Owners Protest Against Record Tax Hikes
There are no dull days in the local housing market! Colorado homeowners are protesting and appealing property valuations at an unprecedented rate, with protests increasing by 300% compared to previous cycles. The surge in protests follows a wild real estate market over the past few years, in which home prices doubled in mountain communities and increased up to 50% in metro areas. Property tax bills due in 2024 and 2025 are expected to rise by at least 50%.
The “urban exodus” during the pandemic brought a flood of new buyers to Colorado, resulting in bidding wars and record-setting prices. Assessors have to set values based on sales between 2020 and 2022, even though the market has since cooled. County boards of equalization are bracing for a tidal wave of appeals from property owners. The recent repeal of the Gallagher Amendment further compounds the situation, leaving homeowners facing the most significant annual increase in property tax bills in decades. Property owners hope for legislative solutions to ease the burden, similar to California’s limits on annual property tax increases. Governor Jared Polis has proposed Proposition HH to address the issue, but it faces opposition and legal challenges. Sadly, many fear the dramatic tax bill increases could force them to sell their properties.
LOCAL MARKET UPDATE
Busier than Spring, but Still Slow
In June, the Denver real estate market continues to show resilience amidst ongoing challenges. Prices remained stable compared to the previous year, with a slight 0.3% dip. However, compared to May, prices rose by 2.5%. It is important to note that we are experiencing a seasonal increase in active homes this time of year, but it is a bit delayed. Usually, spring is busy in residential real estate, and summer tapers off a bit. Spring was a bit slower this year, and now summer is a bit more active.
In June, active listings rose to 6,070, reflecting a 16% increase from May. Condos performed impressively, with a 22% improvement in the listing count, while detached listings saw a 6% drop. The low sales volume we experienced in the first half of the year will likely continue until the end of the year.
As we move forward, the market may face further challenges, like a mild recession, and it is crucial to monitor the potential impact of mortgage rate fluctuations on your move. With relatively high mortgage rates, buyer activity might experience a further slowdown. However, Denver’s market is expected to maintain a delicate balance of supply and demand throughout the year, with prices remaining stable within a range of +/- 3%.
(Info Source: June 2023 DMAR Market Report, Lon Welsh, CEO of Your Castle Real Estate)
INFO FOR SELLERS
Don’t Overprice Your Home
Are you looking to sell your home in the next few months? Here’s what you need to know. While up from May, the number of new listings brought to the market in June decreased significantly from the same time last year by around 25%. The scarcity of inventory provides a potential advantage for sellers. After all, this is supposed to be the busy season! Although there has been a decline in sold listings compared to last year, prices have remained relatively stable. This is excellent news for you.
However, setting a competitive and realistic price is crucial to attract buyers and avoid longer list times. Homes that sit on the market longer usually need price reductions to move. Be mindful of these trends to maximize your selling opportunities. Reach out for a personalized market analysis and pricing strategy for your home!
(Info Source: June 2023 DMAR Market Report, Lon Welsh, CEO of Your Castle Real Estate)
INFO FOR BUYERS
Watch Those Mortgage Interest Rates!
Are you looking to buy a home? The current scarcity of inventory has led to competitive bidding situations, requiring buyers to be prepared and act quickly. Seek pre-approval from your lender to strengthen your position. Prices have remained relatively stable, giving buyers a window of opportunity to explore the market without drastic price increases. However, remember how daily mortgage rate fluctuations affect your monthly payments. Small rate changes can sometimes result in a several hundred dollars-per-month change in your monthly costs. Securing a rate lock on your property as soon as possible will help you be more certain about your final month-to-month costs and provide a bit of welcome relief planning-wise. Contact us today if you want guidance to navigate the home-buying process and secure your dream home!
(Info Source: June 2023 DMAR Market Report, Lon Welsh, CEO of Your Castle Real Estate)
*We use reasonable efforts to include accurate and up-to-date information. The real estate market changes often. We make no guarantees of future real estate performance and assume no liability for any errors or omissions in the content.