Source: Jeff Todd of CBS Denver
3737 N. Quebec St., formerly the Quality Inn & Suites, is now a 139-unit studio apartment building for people struggling with homelessness. The project utilized funding from the Denver Housing Authority’s bond program — a new partnership with the city — along with funding from other programs.
John Parvensky, the president of the Colorado Coalition for the Homeless, stated that the project’s intent is to provide access to mental health, counseling, and employment services in addition to affordable housing. Watch the news clip and read the City of Denver’s statement below!
Sale price is up significantly year over year, coming in at just over 30K more than 2019. Overall for Q1 so far, we’re not seeing the degree of price softening as Denver experienced last year (and typically experiences).
We’re seeing more days on market than last year too, with an average of 40 days compared to last February’s 36.
Inventory saw a drop year-over-year, with 1.6 months compared to 2.2 in 2019.
Though there were fewer homes listed in February of 2020 than 2019, there were over 50 more sales, leading to the drop in inventory and the lower than average dip in median sales prices over the first couple months of 2020.
The end of a decade is always an excuse for reflection, and in Denver’s real estate market there is much to reflect on. The events of the last year alone are a lot to take in… luckily, Love Your Hood is here with your easy-to-digest 2019 Denver market highlight reel!
The Most and Least Expensive Denver Neighborhoods
Denver County as a whole saw a median home prices just over $442k last year. Flashback to 2010, Denver had a median price of $203k. This statistic has more than doubled since the decade started! Country Club topped the median sales price (MSP) charts in 2019, with a MSP of $1,164,000. Goldsmith took home the most affordable neighborhood position with an MSP of $177,500. Check out how the other neighborhoods stack up in affordability:
- Over 45% of Denver’s neighborhoods have an MSP of greater than $500,000.
- About half of Denver’s neighborhoods are in the $250k-$500k range, and
- Just 3.8% of neighborhoods had an MSP of less than $250,000. Tight budget = tough to find a home.
Map of Median Sale Price by Denver Neighborhood
This interactive map shows the city of Denver broken down by affordability of median sales prices. Scroll over a neighborhood to see its MSP for 2019, and use the buttons along the bottom of the map to share and see full screen. Read on to see Denver’s neighborhoods categorized in a few more useful ways!
Denver Neighborhoods that Appreciated the Most + Least in the Last Year
We ranked Denver’s hottest up-and-coming neighborhoods using historical price growth data. Topping the list for MSP growth in 2019 was Auraria at 28%, driven largely by the proximity to Union Station and low number of total homes in the neighborhood. Cherry Creek, Speer & Union Station (LoDo), three neighborhoods highly sought-after by homeowners and businesses, were also at the top. Notable as well is Marston and Elyria Swansea, two neighborhoods whose median sales prices fell under the Denver Metro MSP in 2019 but their MSP growth was near the top.
With increasingly more opinions on Denver’s housing market there have been varying reports of exactly where we stand. Has Denver finally shifted towards a buyer’s market, or is the market getting even tougher on home buyers?
For the housing market as a whole, the numbers present a not-quite-as-strong-but-still-very-strong seller’s market. But, it’s not quite that simple, as agent Megan Aller stated in her recent Westword interview. Within the Denver market, we’re seeing the luxury market soften significantly, while the median-priced homebuyer almost always has to compete with multiple offers.
Days on the Market
2019 went out just as it started with regards to days on market, averaging about 37 days on market in Q1 and Q4 of 2019. There were fewer days on market during the busy spring and summer season as expected.
Notable here is that even with slightly less inventory than 2018Q4, 2019Q4 homes took longer on average to sell. This is a nod to our theme this year, the market is not quite as competitive for buyers, but this change is marginal.
Inventory in Q4 was lower than in 2018, with about 200 less homes in October, November, and December on average. This is largely due to new homes becoming available towards the end of last year and this summer. Denver reached its peak this September with 2,605 units on the market! As a result, sales last quarter were higher than last year. Since September of 2019 you can see inventory on a downward slope.
November was an interesting month. Compared to 2018, the median sale price is up quite a bit. But compared to October, there was a slight drop in price, which is to be expected. Home inventory is down, but the average time spent on the market is up. Buyers look to be becoming more disciplined in their decision making. Multiple offers are still happening, but only on pristine, well-priced homes in hot neighborhoods. Buyers aren’t just buying because they’re worried about getting left out of the Denver market! They’re more calculated with their home selection and are using statistical data to justify their offer pricing. As we close out the decade and begin 2020, we’ll keep a close eye on inventory numbers. If year-over-year numbers are significantly lower for the first quarter, buckle up and expect a wild ride this summer!
Falling interest rates. Lower inventory. Higher sales volume. How much higher can prices go?
We’ve been reading again and again in the news about falling interest rates. Then, it finally happened: rates rose for the first time since October 2018. Does this mean interest rates are finally becoming stagnant? While the 30-year mortgage rate is down nearly 1% from last October, a small increase from September is notable. The increase can be partially attributed to a rising stock market and hints of a deal in the China trade war.
Denver home inventory was down 4.5% from last October while homes sales were up 9.4% for the same time periods. This equation has the potential to push prices higher during a season that typically sees steady to modest price increases. If you’re anticipating a deal during the winter season, keep an eye on interest rates. If they keep rising, you may see panicked buyers making rushed decisions in order to lock in a great interest rate.
Rezoning deal could make way for new skyscrapers on Denver’s Sherman Street if developers agree to build affordable housing
Source: Joe Rubino of the Denver Post
Three lots on Sherman Street, east of downtown, may be getting a makeover soon! The Dikeous family, who owns the lots, is lobbying the city to rezone to allow building over 155 feet, the current view plane restriction. The Dikeous family would agree to more than half a million dollars in sidewalk and street repairs, as well as including 211 affordable housing in their projects. The buildings could be as tall as 45 stories. So far the Dikeous family has put 18 months of work and over 75 neighborhood meetings into the proposed deal.
Reporter Joe Rubino dives into the details of the proposed project, community reaction, and history of the view plane restrictions in the full article below.
Rising national unemployment, declining large purchase sales and tumultuous securities markets have some economists forecasting a recession. Despite this, Cushman & Wakefield managing director Jon Hendrickson feels that safe lending practices and Denver’s growth in jobs show a recession is not near.
Hendrickson distinguishes recent recessions from today’s market condition, and why Denver is one of the top markets in the company in the full article.
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.