Home sales slowed this August as the summer nears its end. In July, we saw high sales volume and sales price. August had a large dip in detached home median sales price while attached condos, townhomes, and duplexes rose in median sales price. Interest rates continue to fall, the lowest they’ve been since October 2016! The star player in Denver’s home market continues to be inventory, with the highest number of August active listings in the last six years. This is resulting in homes spending more time on the market, and lower home prices.
Source: Bill Hethcock and Denver Business Journal Staff of the Denver Business Journal
John Burns Real Estate Consulting has analyzed 130 metro areas in the United States for what percentage of their residents can afford an entry-level home in that metro. The report considered a home priced 20% lower than the median in that area as entry level and assumed a 5% down payment. It features an interactive infographic which allows you to compare Denver with other major metros across the country! Denver, with 50.2% of it’s residents able to afford a home in this range, is much more affordable than cities like San Francisco (11%), NYC (36%) and Boulder (40%), but less so than Boston (51%) and Chicago (59%) and several other metros.
Just how big is the barrier to entry to owning a home in Denver? Here are some numbers for the five most expensive zip codes in the city:
Cost of Entry in Denver's Most Expensive ZIP Codes
|ZIP Code||Denver Neighborhoods within ZIP Code||Median Home Value||Monthly Mortgage Payment||Minimum Salary Required|
Looking for a neighborhood that’s more friendly to your pocketbook? Reach out to our team and we’d love to help you find your next place.
Source: Aldo Svaldi of the Denver Post
Anyone with a “Native” bumper sticker can tell you how fast home prices have risen in the past decade. The median price is now over five times the median household income, a new record which has economists scratching their heads. This article touches on a frequently overlooked contributor to our current home prices: the size of new homes. With new homes going bigger and bigger in scale, some developers are focusing on building smaller homes to be able to reach the “median” Denver residents.
Read more about the reasons for the rise in Denver home prices and how one developer, Mission Homes, is thinking small in the full article below!
“There’s speculators buying up houses:” Denver’s East Colfax braces for transit, density and displacement
Source: Andrew Kenney of the Denver Post
Denver government and development reporter Andrew Kenney believes, “East Colfax is the next frontier.” From small-scale home-flippers, to development firms, to the City of Denver, investors have big plans for this neighborhood. The danger, as it always is with development, is displacement. Can the City of Denver and its housing market players revive this area’s businesses and public transportation? And, can they do it without destroying one of Denver’s last pockets of affordable housing? Read the full article below to learn more!
Curious what’s for sale in this neighborhood? Find out here:
July brought scorching heat and a housing market to match! Almost 15% more homes were sold this July than last, and the median home price was over 5% higher.
The average days homes in Denver spent on the market was 27 this July, significantly higher than July of 2018. While Denver’s housing market is still a sellers market overall, with 1.8 months of inventory, the surge of luxury high rises in Denver has swung the luxury condo market favor back to the buyers. The Denver Metro Association of Realtors’ July report shows 5.6 months of inventory for attached homes priced between $750,000 and $1 million.
Interest rates crept downward again this in July and the median home price was slightly lower than last month offering a bit of relief to Denver area buyers.
Source: Aldo Svaldi of the Denver Post
Companies that buy homes directly from sellers in enormous quantities have surged in popularity by simplifying the process for the seller. One of the most prominent companies with this model is Opendoor, who collects data on what home buyers are looking for — and what they’re not. Carpeted floors are at the top of Opendoor’s “not” list. Read the full article to see how much money carpet could knock off your sale price and what else Opendoor recommends avoiding.
Source: Ben Casselman and Conor Dougherty of the New York Times
Competition from investors has made the already tough housing market even more difficult for first time home buyers. Anyone who has ever seen HGTV knows the appeal to flip homes has been glamorized and popularized, and now big time Wall Street investors have entered the game. Last year, investors bought one out of five starter homes in the U.S. This is pushing prices up rapidly in areas of future growth. Coupled with their ability to pay with cash and sit on homes until they are double in price, first time home buyers have an added competitor.
To hear more about where investors are honing in on homes, read the full article below.
Although the market remains in the favor of sellers, it’s not all bad news for buyers. Lower interest rates and a higher number of listings mean it’s a good time for buyers to talk to their lender and start their hunt! Good news for sellers comes in the form of the highest median price for a detached single family home, ever!
Days on the Market
In June 2018, homes in Denver lasted an average of just 18 days on the market. Buyers who aren’t quite ready to make a decision have a slight advantage over last year, with an average of 24 days before a home is sold in June 2019. However, the summer is certainly heating up as this is the shortest time on the market we’ve seen homes sitting in 2019 thus far.
And while the market is speeding up this summer, on a year-over-year basis, it’s starting to slow since it’s fastest pace in 2015.
Denver remains a seller’s market for the seventh year in a row, with an average just shy of 2 months housing inventory as we head into July. The news isn’t all bad for buyers, though – the city was up to 2,451 active listings in June. The last time buyers had this many options was back in October of 2013!
Source: Carley Milligan and the Denver Business Journal Staff
It probably comes as no surprise that homes in Denver with a garage are selling at a higher rate than those without; but just how much higher? A whopping ten percent! For an average home in Denver, that’s roughly $35K extra for a roof over your car. For cities like Chicago, it’s an even more sought after commodity, where the snow fall (and lack of sunshine to melt it away) makes it less inviting to be outside and a real challenge to scrape off your car.
Check out the full article below for more information on where in the U.S. a garage will get you the most return!
Source: Rebecca Troyer of the Denver Business Journal
The Denver metro area saw another jump in population, by an estimated 1.53% from 2017 to 2018. This data probably does not raise any eyebrows of anyone commuting to work on I-25. Greeley, CO, came in at No. 7 for fastest growth of metro’s nationwide.
Dive into the full article below for a comparison of Denver’s growth and that of other U.S. metros!