As home values continue to climb, experts say things are not as bad as they seem - for now

Another interest rate hike is on the horizon, and with an increase in the median price of single-family homes across Colorado's Front Range year after year, it's natural for prospective buyers to be worried. But experts say things are not as bad as they seem - for now. 

"If you're looking at maybe buying a house right now versus last year, yes, the interest rate is double, but you're not paying above asking anymore. Ya know, if a house is listed for $450,00, there's a strong chance you're going to get it for $450,00," said Matthew Leprino, owner of Remingo Brokerage and spokesman for the Colorado Association of Realtors. 

According to data from the Colorado Association of Realtors, the median home price for the state peaked in April at around $600,000. For the Front Range, that number also peaked in April at $660,000. While home prices are still on the rise year over year, they aren't rising nearly as fast.

"The last month was the first month we saw year-over-year median price increases drop below 10%," Leprino continued, "the median value is still increasing in the metro area, however, as of last month it's back in the single digits after being in the double digits since 2020."

There are of course a few outliers specific to the Colorado market, like the burned-down home in Golden listed for $840,000. 

"Who in their right mind would pay that kind of price for a home of that condition?" asked Sue Lund, a Golden resident, and neighbor to the burned-down home. 

She said prior to the fire, there had been interest in the property. In fact, Lund said strangers have often inquired about her property as well. Living next to South Table Mountain is a coveted spot, but she still can't get over the list price for her neighbor's home. 

"People will buy a perfectly good home and tear it down because they want the lot, they want the location," she said. 

It's likely that will happen with her neighbor's home. Leprino said there will always be a desire to live in these kinds of neighborhoods and infill is the only solution for those who want to build new.

Leprino says these kinds of properties are, of course, not reflective of the market. So, what should the average prospective buyer in Colorado prepare for? 

"Yes, interest rates are significantly higher, however; the overall cost of ownership is not that much different than it was a year ago," he said. "Now, that will change if interest rates continue to go up. I know the Fed is saying one more time this month, that's what they've predicted but it could get into some scary territory with that but it's all relative when you put it in the competitive nature of home buying right now."