Colorado Real Estate Market: Real Estate Market Trends

Denver Colorado real estate market is seeing the same trends as the rest of the country. The Denver market is short on inventory and flooded with buyers. Buyers are seeing homes values climb to an all time high with inventory at an all time low. Supply and demand is tight. The unbalanced market is making things challenging on both buyers and sellers. Yes it is a great time to be a seller as long as you aren’t trying to find another place to live.

Denver, CO

Denver, Colorado Real Estate Market

About the Denver Real Estate Market

Denver real estate market is broken into three areas. The Metro Denver area is made up of the city proper, the suburbs north and south of the city. This area is known as the greater metro area. The third area is the North Denver Urban sub-market made up of the River North Art District, Five Points, and Lowry. In the greater metro area the market is in flux. Demand is high with limited supply. This is creating bidding wars, multiple offers, and low inventory. That is good news for buyers. There is no shortage of potential sellers either. In the submarket north of the metro area there is an imbalance in the housing market. The same issues impacting the metro area is true north of the beltline. This is creating a real estate bargain.

Denver Real Estate Market Trends

There are two things the Colorado real estate market has going for it. It is one of the fastest growing states in the country and it is one of the easiest places to sell a home. Low inventory is forcing buyers to take their time in deciding on a home. They are also picking homes with good neighborhoods and good schools, making it easy to sell in a hurry. The price to purchase a home has also climbed significantly over the last few years. The inventory problem is so severe that Denver is actually starting to experience a negative number. This is where more homes go on the market than it has homes to sell. No wonder buyers are seeing quick sales and fast deals. The cost of homes is rising but it’s not making it any easier for buyers to get into the market.

Denver Real Estate MarketThe Denver Real Estate Market

According to the Denver Business Journal, real estate values are soaring in the Denver area. Home values are up 5.1 percent in 2017 compared to 2016. In 2017 Denver is the number one place to live in the U.S. The average price for a single-family home in Denver is $446,000. The median home value in Denver is $307,000. While those numbers are staggering, it is important to remember that the majority of Denver home sales are for entry level homes. Entry level homes are generally priced between $200,000 to $500,000. Most buyers have to work to purchase a home in Denver as the median household income in Denver is $52,000 a year. People with higher incomes simply cannot afford to buy homes in the Denver area. Even with these inflated home prices, people are still flooding the market.

Denver Real Estate MarketThe Denver Market

Why? Sellers don’t want to move and want to wait. As long as the buyer can pay the current market rate, they will take it. Buyers are getting a bit frustrated with the market as well. They are getting frustrated with the reality of prices and their lack of choices. One local realtor says that buyers are frustrated with everything from slow moving sales to lack of variety of homes. Price Action The chart below shows a look at house prices and prices for two week period. There are two types of people in the market: those who want a good value and those who are looking for a dream home. The chart shows that the home value sellers are way out of whack with the buyers.

Denver Real Estate MarketThe Denver Market Trends

Worried About Standing Out in Denver’s Surging Market? Try These Tactics According to the latest report by Brokerage firm Century 21, the affordable luxury price point is the hot one in Denver. With so much inventory, finding a home in that price point isn’t easy

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Colorado Real Estate Market: Real Estate Market Trends

Denver Colorado real estate market is seeing the same trends as the rest of the country. The Denver market is short on inventory and flooded with buyers. Buyers are seeing homes values climb to an all time high with inventory at an all time low. Supply and demand is tight. The unbalanced market is making things challenging on both buyers and sellers. Yes it is a great time to be a seller as long as you aren’t trying to find another place to live.

What is Denver Real Estate Market?

Colorado is the seventh most populous state in the nation. A growing population equates to a strong real estate market. Denver has been a thriving hub for economic growth and continues to flourish. The unbalanced market has people having a tough time finding the right home. Denver ranks number one in traffic and we saw a surge in new home construction in 2016. There is no shortage of apartments in Denver. The largest building boom in Denver is in the central city which is experiencing the most home prices rise. Denver is working its way back to the previous market equilibrium, or even surpassing it. How is the Denver Home Price Index Moving? The real estate price index is a graph of home prices and not a price set by a traditional house appraisal.

Denver Real Estate Market Trends

Supply is at an all time low. Real Estate Brokers have only two months worth of inventory on the market in any given time period. Many people are moving out of the city because of the lack of inventory in Denver. There is not a real estate boom happening right now. There are just too few homes to buy and sell in Denver Colorado. In fact the Denver real estate market is down 0.6% from last year. Denver is in between a good and bad place right now. There isn’t a recession but the market isn’t super hot either. The demand for properties is driving the price of homes to a new record high. The average price of homes in Denver is $477,067 with the median price at $372,000. In other words in 2016 the average home was only 6.1 months of the value of the last home sold in the neighborhood.

Denver Real Estate MarketThe Denver Real Estate Market

Walking through the ski condos and single family homes in the high rises downtown this year has given me a totally different perspective than last year. Unlike last year when prices were soaring and inventory was very low, this year inventory is still low but prices are skyrocketing. Not just in downtown Denver but everywhere in the Denver area. This will most likely be the direction the market is going for the rest of the year. Sales are steady and prices are rising rapidly, making the Denver market the hottest market in the country. At the start of the year there were only 334 homes for sale but now there are an additional 560. Since January inventory has been cut in half which is a good sign for sellers.

Denver Real Estate MarketThe Denver Market

Denver is one of the most vibrant cities in the country and with a high cost of living has become a highly sought after market for retirees, young professionals and companies looking to relocate. While home prices are still moderate, buyer demand is high which has caused the inventory of homes to drop substantially. In fact, only 7 months worth of inventory is considered a healthy market, and that number is only three months for Denver, making it an unbalanced market. According to Zillow, “supply has been low and demand has been high because we are short on homes for sale. Fewer homes for sale makes it hard for buyers to find what they want in a reasonable amount of time.

Denver Real Estate MarketThe Denver Market Trends

Denver is growing, becoming more diverse. The racial makeup has increased to 53% Caucasian, 39% Hispanic, 13% Asian, and 3% Black. Denver is also becoming more diverse in terms of economics, education, political affiliation and religion. This influx of new people has brought about new construction which has helped put new inventory on the market. The number of new houses completed has been in the 5000’s from 2010-2012 but had dropped to the 3000’s in 2013. Why is this happening? We found these two trends being talked about in Denver real estate. Demand is high Availability of homes in Denver is low Solution to the problem? Denver has a 10-15 year supply of existing homes. That means there is a 10-15 year supply of homes for sale.

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Orson Hill Realty in Denver, Colorado

The Office of Housing and Workforce Development say that there are about 3700 homes on the market right now in the Denver area. These homes are not going to be in the short term, they are going to be a few years down the road. This is the same situation as the rest of the country. Just like the rest of the country, it is a seller’s market. A seller can ask more for their home as long as they are in the position to keep it. That means the only thing that would stop the price is having enough homes for sale. There are some new trends that are going on in the Denver real estate market. The new trend is the renovation. Some of the homes that are being renovated are even listed for over a million dollars. The housing market is changing from a short term fix, to a long term fix.

Orson Hill Realty

 is going to help you navigate the local real estate market. Orson Hill has been in the business for over 15 years and is a leading real estate broker in the area. Orson’s team is all about customer service. They always go the extra mile and try to find the best solutions to all your real estate needs. Orson is committed to their clients, as are the agents that work with him and his agents. And this commitment is paying off. Orson’s team is constantly at the top of the Denver real estate market and are an integral part of the neighborhood and community. Orson Hill has been the top team for sales volume over the past two years and is looking to improve on that again in the new year.

Orson Hill Realty

 Is going to help you navigate the local real estate market. Orson Hill has been in the business for over 15 years and is a leading real estate broker in the area. Orson’s team is all about customer service. They always go the extra mile and try to find the best solutions to all your real estate needs. Orson is committed to their clients, as are the agents that work with him and his agents. And this commitment is paying off. Orson’s team is constantly at the top of the Denver real estate market and are an integral part of the neighborhood and community. Orson Hill has been the top team for sales volume over the past two years and is looking to improve on that again in the new year.

Orson Hill Realty

 is going to help you navigate the local real estate market. Orson Hill has been in the business for over 15 years and is a leading real estate broker in the area. Orson’s team is all about customer service. They always go the extra mile and try to find the best solutions to all your real estate needs. Orson is committed to their clients, as are the agents that work with him and his agents. And this commitment is paying off. Orson’s team is constantly at the top of the Denver real estate market and are an integral part of the neighborhood and community. Orson Hill has been the top team for sales volume over the past two years and is looking to improve on that again in the new year.

Conclusion

Real estate market isn’t just one market or city, there are many factors that play into a perfect market. Denver is enjoying a real estate market bubble similar to the rest of the country, but that is expected to burst in 2018. It’s important to not rush into a purchase and not make any major purchase until it feels right. Do your research, ask lots of questions and use multiple resources to help you make an informed decision.