There’s a lot to talk about from last year’s real estate neighborhood data! 2021 continued building on the momentum from the buying frenzy that kicked off after the pandemic started. The competition to find a new home was a brutal reality for most of the people buying last year. With homes going under contract in mere hours in the hottest neighborhoods, the question is: was it like that in all of Denver’s hoods? Let’s dive in!
Union Station, Denver | Home of the Priciest Square Footage in the City
The Most and Least Expensive Denver Neighborhoods
We’ve all heard how expensive Denver is becoming. When we look at the stats for the entire Front Range, counties like Boulder and Clear Creek tend to skew the numbers. Dialing into just Denver County, the median sale price (MSP) went up 12.9% in 2021, but some neighborhoods have seen an even higher increase. So, to answer the burning question, is Denver becoming unaffordable? I’ll let you decide…
- Over 61% of Denver’s neighborhoods have an MSP greater than $500,000 (up from 51% of neighborhoods in 2020).
- Only 35% of Denver’s neighborhoods are in the $250k-$500k range (down from 43% in 2020).
- Just 2.6% of neighborhoods have an MSP of less than $250,000 (down from 3.8% in 2020).
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. Every neighborhood in the top 10 this year on our MSP growth list wasn’t there in 2020. Buyers are focusing on historically less-popular neighborhoods to find better deals in this tough market. In turn, this is driving up the prices in those neighborhoods!
Denver Neighborhoods that Appreciated the Most + Least in the Last Five Years
Looking back over the last five years and focusing on the neighborhoods with the most appreciation brings a few newcomers to the list. Hilltop, Wellshire, Hale, Barnum, Athmar Park, Chaffee Park, and Sunnyside all broke into the top ten this year. In fact, only three remained in the top ten from last year: College View / South Platte, Barnum West, and Washington Virginia Vale.
The Priciest and Cheapest Square Footage in Denver
Price per square foot (PSF) is a great metric for homebuyers because it puts neighborhoods on a more even playing field, in regard to density. If you have minimum space requirements for your home search (which, let’s face it, we all do), PSF is an excellent tool. Multiply the PSF for a neighborhood by your space needs to get an idea of which neighborhoods will work for your budget. Below, we have the top ten priciest and most affordable neighborhoods by PSF — it’s no surprise that Union Station leads the pack:
The Fastest and Slowest Selling Neighborhoods in Denver
If you’re staying attuned to our monthly market updates, this shouldn’t be a big surprise: single-family homes and condos are moving quickly. Historically more affordable neighborhoods topped the list this year, as buyers scooped up homes, bringing down the average days on market to single digits! The chart below reveals Denver’s fastest and slowest-selling neighborhoods by the average number of days that homes spend on the market:
Denver Neighborhoods with the Most and Least Inventory
The single-family market has very little inventory. It was low in 2020 and got worse in 2021, with most neighborhoods having less than two weeks! While Denver County fares slightly better at 0.7 months, there really isn’t much to choose from when shopping for homes. Inventory ranging from 5-8 months is a neutral market. It feels like ages ago since we last had one!
Our 2021 neighborhood recap sounds like a broken record. The only real change in the market for the start of 2021 is interest rates. The data we are seeing isn’t showing any sign of a cool down anytime soon. Sellers are still fearful of listing their home and not finding a replacement home to buy, which is exacerbating the problem. Even in a tight market, we’re still helping our clients successfully purchase homes in Denver. If you want to find out how we can help you maximize the profit on your current home and actually buy another one, please reach out!