Source: Kelcey McClung at the Denver Business Journal
Affordable housing options in Denver are scarce but there is a group that is doing something about it! A group of 8 funders have partnered to invest around $25 million to create over 700 affordable homes for low-income housing in the Denver area, within the next five years. Not only are they providing housing, the trust is also going to assist families in accessing early childhood education, workforce training and placement, healthcare, and wealth-building opportunities. This won’t completely solve the affordable housing problem but this is an AWESOME start!
Source: Caitlin Hendee at the Denver Business Journal
Real estate development is seeing a parking lot and turning it into a district, which is exactly what The Rockies are doing. The west parking lot at 19th and Wazee will be transformed into what will be known as “the Stadium District,” an impressive and dynamic mixed-used development that will connect LoDo to Union Station and RiNo. This block will have an outdoor plaza, the Rockies Hall of Fame facility, a hotel, retail, entertainment, residential, offices, and food and beverage spaces.
There are two words to sum up the real estate market in November: seasonal slowdown.
Proof of this seasonal slowdown is in the amount of homes that were available for buyers to choose from, the average days that these homes stayed on the market, and the median price of a detached, single-family home.
Inventory was at an all time low, which is nothing new here! With only 1,427 homes listed in November, we had 1.3 months of inventory available in Denver. The average time that these homes stayed on the market was 30 days (in October it was 27).
And let’s talk about prices. The median sales price for a detached, single-family home was $438,500, a $7,450 decrease from October. Although, that’s a welcomed breather from the continual price climb, it’s hardly enough to move the median price to a more affordable level.
Usually the narrative about low inventory revolves around how quickly and how much over list price these homes sell, but this past month was a little different. Yes, we did see some awesome homes go quickly and over list price with multiple offers, but we also experienced our buyers not willing to pull the trigger on a home as quickly. Why? Because they just didn’t have many homes to compare them to. And since these homes stayed on the market longer, sellers were more willing to accept offers below the list price, which explains the decrease in median sales price.
So does this mean that Denver was in a real estate bubble after all and you should be worried about it finally bursting? We are pretty confident in saying no to that question. This seasonal slowdown is most likely just that: seasonal. And it is totally normal. We are in the busiest time of the year with all the holiday festivities of Thanksgiving, Christmas, and New Years. If this year’s seasonal slowdown is anything like last year, the market will most likely keep slowing down over the next couple of months and then pick back up around March or April.
Now, if we could just get the snow to fall a little like the real estate prices have!
Is it just us or has November been hot? We’re beginning to think Mother Nature has been basing temperatures on our “hot” real estate market. October’s median price is still hot, but the other four indicators are supporting a cool down. Better grab your coat!
Source: Samantha Sharf at Forbes
Trump’s Tax Cuts & Jobs Act was released at the beginning of November (follow the live coverage about it on The Wall Street Journal’s website). Three major components of this Reform that are relevant to buyers, sellers, and investors are:
- the mortgage interest deduction will go from $1million to $500k,
- a new cap on property taxes, and
- capital gains limitations.
These all become more concerning as the median home price is approaching $500k in Denver.
Anyone else noticing a slowdown in the market? I bet those are words you didn’t think you’d read! But it’s true… we’re starting to see homes stay on the market longer and the median sale price is creeping down. If this fall/winter is anything like last year, then we expect the peak slowdown to happen in February. Oh, and the inventory… well, that’s low too (but that’s old news). Even though we’re seeing an uptick in homes for sale since August, we’re still under two months of inventory and holding steady in this sellers’ market.
Source: Kurt Sevits at Denver 7
Inventory is still low but we actually have some different kind of news to report to you: the Denver real estate market is slowing down just a little bit. In September, the number of homes that sold had a noticeable decrease. Typically sales are down 10% from August to September, but last month it was down 21%! Showings are slowing down as well. Denver isn’t known for following seasonal trends (#snowinoctober), but we may be getting a glimpse of an true seasonal slowdown in the real estate market.
New Denver Affordable Housing Plan Faces Questions about How City Will Help Residents Being Pushed out
Source: Jon Murray at The Denver Post
Denver released Housing an Inclusive Denver, a 98 page draft plan that goes over how the city will bring opportunity to vulnerable neighborhoods. Rightly so, residents are questioning if this plan will help them actually stay in their home or if it will displace them somewhere else. In neighborhoods where generational and cultural roots run deep, we understand their concern. What are your thoughts?