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?
Months of inventory dropped 5.5% year over year. Average days on the market went up 20%. The median price for single family homes are up 11.8%. Why are homes sitting longer but everything else is trending toward an even tighter seller’s market?
One word, extremes. Buyers are circling the inventory like sharks, waiting for homes to hit. Homes in desirable ‘hoods, priced well, and in great condition are gone in a matter of days — sometimes hours. If a home hits the market and is passed over during the first week, it will likely remain on the market until action is taken by the seller (price drop, improvement, enticement, etc). Some sellers are overzealous and think the market is so hot they can just toss any crazy number on the listing and they will get an offer. The savvy buyer these days will only consider homes that are hitting now and rarely go back for a second look unless there is a substantial change in the listing.
Source: Ben Miller at Denver Business Journal
99.5% of Denver homes are worth more than they were at the peak of the housing bubble in the mid-2000s. This is impressive, given that nationally only 48% of homes are worth more than they were at the peak. Just how much have Denver homes increased in value? A whopping 60% on average. What’s crazier: experts don’t see this reversing anytime soon.
Source: Michael Konopasek at Fox31 Denver
In November, Denver will vote on whether or not new large buildings (25,000 sq ft or larger) should be required to install rooftop gardens, solar panels, or both. The purpose: to combat what is known as the “urban heat island” effect — when metro areas are significantly warmer than surrounding areas because of human activities. Our thoughts? Sounds like a great deal but the end users have to be willing to pick up the tab unless there is an incentive package. This will be another layer of expense for new housing when Denver is already in need of more affordable options.
Denver is still in a deep seller’s market. Lack of new inventory and continued buyer demand are keeping things tight as we go into the third quarter. The only cool down coming in the second half of 2017 is fall!
The Most + Least Expensive Denver Neighborhoods
When compiling the most expensive and affordable Denver neighborhoods, we found it helpful to analyze the list two different ways: one based on the median sales price and the other based on price per square foot. Why? When you think Country Club, you think of large houses and decent size lots. While this neighborhood boasted the highest median sale prices in the city, it doesn’t have the highest price per square foot. Instead, if you want to know the most expensive prices per square foot of real estate, check out the second list. Think of more urban, densely populated neighborhoods for this. While these homes may not be as large, each square foot of them is more expensive.
Based on Median Sale Prices
Don’t feel bad if you are scratching your head and saying to yourself, “Auraria, really?” We did the same thing, so we dug into the numbers to see what was up. This hood only has a few housing options, all of which are loft/condo units. With only four sales in the last six months (and one of them going for $1.9 million), there isn’t enough data to give a great representation of this neighborhood. We don’t expect to see it on the list next quarter.
The map below sorts neighborhoods based on their median sale price for the second quarter of 2017. It’s a great tool to use when determining neighborhoods to focus on for your home search. Clicking on an individual neighborhood will show you the median sale price for that particular neighborhood.
View map in larger screen here.
Temperatures aren’t the only thing heating up right now — the May real estate market was hotter than ever. The median price for a home in Denver was $410,000 in May, nearly $7,000 more than in April and over $36,000 more compared to the same time last year. The average number of days that homes stayed on the market dropped by 5 to 19 days in May from the previous month. This means the market is doing what we know it to do in the summer — move faster and for more money. The ray of sunshine for buyers? Mortgage rates were at their lowest for the year in May, which means more buying power!
Source: Aldo Svaldi at The Denver Post
Metro Denver apartment rents rose for the third straight month in March, erasing all the declines that went in favor of tenants last fall, according to a report Tuesday from Axiometrics, a Dallas firm that tracks multi-family housing trends.
Metro Denver’s average effective apartment rent stood at $1,411 in March, up $22 from February and $51 higher than the recent low of $1,360 measured in December, according to Axiometrics.