As published in DMAR Market Trends, May 2023

The Property Tax Deferral Program, created in 2021, allows Coloradans to defer a portion of their property tax if they increase over 4%.

Between the first quarter of 2021 and the fourth quarter of 2022, about 15% of homes sold in the Denver metro were to investors, that’s about one in every seven homes.

Property assessors for nine metro Denver area counties recently announced that property valuations saw double-digit increases in their biannual assessment.

According to new research by Moneywise, Colorado ranks fourth on its list of most difficult states for first-time homebuyers due to high prices and a lack of available inventory. Others in the top five were Hawaii, California, Washington and Massachusetts.

Investment and rental properties make up the second-largest number of property listings right now.

According to a Zillow study, 60% of Gen Z homebuyers, consider pet-friendly features essential and 48% listed a fenced backyard as important to their home search.

A new survey shows that the pandemic turned many homeowners into homebodies. This is showing up in home remodeling with requests for features that help with socializing, including wine storage, beer taps and home-brewed coffee stations.

99% of Millennials want to become homeowners if they are not already. The top motivating factor is to build their own equity instead of someone else’s.

Many buyers are turning to new builds because of the incentives that builders offer, which can be used for rate buy-downs to help with affordability.

MORTGAGE NEWS

The 10-year treasury and mortgage rates settled into a narrow range since November, allowing buyers to grow accustomed to rates in the mid-sixes.

2023 Q1 gross domestic product (GDP) dropped to 1.1% as consumer spending flattened and consumer confidence hit a nine-month low with worries of a recession.

Recessions bring softening inflation and lower mortgage rates. With 1.6 jobs per unemployed person, the labor market continues to be strong. Homebuyers waiting for rates to fall could give an extended selling season in the second half of 2023.