Colorado is one of the most attractive cities in the United States. The market is improving, the industry is growing, and the mountains are spectacular. But have things shaken up a little in 2020? Driving through central Colorado rapidly shows a rise in tents, housing the homeless. There is also an increasing conflict among residents over how to deal with the COVID-19 pandemic, as well as the Black Lives Matter protests.

For several, Colorado is beginning to feel like a city different from what it was a few years ago. No one could have expected at the beginning of this year that 2020 would have developed into such unusual circumstances.

With all these changes, there was expected to be some impact on the local housing market. You need to know about the current state of the Colorado real estate housing market and what you are expecting in the future.

Is it the buyer or seller business in Colorado right now?

Colorado had one of the hottest selling markets in the world in 2016 and 2017. Homes will have several deals and a net much higher than the asking price. Home sellers welcomed the ability to profit in on their investments with lightning-fast house purchases. In 2018, the demand of the seller started to slow down and continued to slow down until the first few months of 2020. The number of affordable homes started to decrease again in the second quarter of 2020.

Realtors use the term "months of inventory" as a method of calculating market power. This term refers to how many months of sales a market will withstand if no new homes are listed for sale until they are fully out of stock. For instance, if the market has just two months of supply and no new homes are listed, the market will run out of homes within two months. Agents consider the demand of the seller to be less than four months of inventory.

Colorado had an inventory supply of 6.4 months at the height of the housing market crisis. It was a big buyer's market. It was a time when buyers had a lot of homes to choose from, and they always had a lot to do.
Colorado had a 1.3-month inventory supply at the busiest peak of 2016. During this time, the houses will be sold in hours with a bunch of offers. It's been a wild time for Colorado real estate agents. Things were moving at a crazy rate, and high-pressure deals were going on all over the area.

You could hear real estate agents in Denver complaining about the current "downturn" of the last few years. But their decline is modest compared to the real collapse we witnessed during the Great Recession.

Low inflation continues to fuel the Colorado real estate housing market. The Federal Reserve has made it clear that it does not plan to increase interest rates anytime. If the prices change, the housing association market will eventually also change. But in the meantime, it is fair to expect the business of the Colorado vendor to stretch to 2021.