2019 seems to be a great year for Denver, Colorado in terms of real estate. Some compare Denver to New York these days, as the city experienced a major boom in terms of economy and population. The biggest difference was noticed in terms of home price appreciation. The housing inventory in Denver increased tremendously, causing the market to explode. People are now constantly looking towards investing money into properties in Denver, as the number of listings continues to grow.
The most popular housing market moved from the metro area and the suburbs to the luxury sector, which is now the focal point of buyers who are willing to spend bigger amounts of money. A regular house in the luxury sector is sold for around $1 million, an amount that surely cannot be neglected. As for the suburbs and metro area, the prices went conveniently down, allowing people to invest in homes around these areas. The entire real estate scene in Denver is turning into a buyer’s market that can’t be ignored.
Comparing prices
The Denver housing market has been hot for a few years now, but this year might come with greater changes. The prices went up to the roof for a while, which didn’t stop buyers from investing in properties in this area. Finally, realtors started to notice a price reduction. This means that the market switched entirely from a seller’s one to a buyer’s one. This fortunate series of events placed Denver in the headlines of all news real estate websites. What actually made a difference was the high demand of new houses. Because offers are quite good and Denver continues to grow in terms of real estate, sellers started to set competitive prices for their properties, fact that instantly led to settling for their listings faster.
Of course, each neighborhood in Denver has a different reputation and comes with various benefits or downsides. Realtors took advantage of the preferences that people have regarding neighborhoods and they sectioned the market. Tony areas host apartments and houses that are definitely more accessible compared to the ones found in the more popular neighborhood of the city. In hot neighborhoods the prices can go up to $3 million, price that was impossible to find on the market a few years ago, especially for a location such as Denver.
In less popular areas of the city, a good property can be sold for just $350,000, which would be more than a convenient buy, considering the current demand. Buyers are happy about the changes that are actively happening in Denver at the moment, but realtors expressed their concerns regarding the price drops. Specialists predicted that the coming months will host even more changes in terms of real estate.
What DMAR says?
DMAR came up with several statistics that should help people understand the numbers easier. The increase they stated in 13.6% each year. Almost every month, the housing listings grow with 5%, more or less. DMAR also mentioned that some areas in Denver can be considered seller’s markets, while others are still considered buyer’s ones. The price ranges might oscillate a while longer until the market eventually gets balanced out.
The increase from January 2018 to January 2019 in terms of property price was almost $450 000. DMAR analyzed Denver’s real estate market based on areas as well: the luxury market hosts properties that are priced between $1 million and $3 million. The signature market includes properties that cost over $700 000 but not exceeding $1 million and so on. The pendulum continues moving back and forward at the moment and both buyers and sellers have to accept the fluctuations until the market stabilizes. The most expensive condo sold in Denver this year was priced $10 million.
In terms of home affordability, the situation in Denver is not the brightest. The digits are actually worrying, as a decrease can be observed compared to the second quarter. The situation is comparable to 2008 when a similar case occurred. The median sales price for 2019 is situated somewhere around $500 000, the price per square feet is $450-$500. As for renting a property, the median rent is $2 200, which is quite expensive compared to other locations.
Final thoughts
Any person interested in closing good real estate deals should take a look at the hot market in Denver. Considering how fast the city developed in this sector, it is important to analyze the market oscillations and predict what might happen during 2019. Some realtors expressed their trust in Denver’s real estate market, while others don’t seem too excited to witness the changes. Another factor that should be mentioned here is the foreclosure. The national foreclosure value is 1.6, while the foreclosure value in Denver is 0.1. This value also affects the price of the properties in Denver.
There are various reasons why a person should consider investing in a property in Denver. Based on the information listed above and basic market analysis, anyone who is interested in real estate deals should consider this location. Because Denver has massive national forests around it, as well as the Rocky Mountain Park, there is no room to grow further, which means the existent buildings will be constantly sold. The housing market can’t extend such as in locations like Dallas.
Another reason would be the strong tourism market and the number of immigrants that are very interested in this location. The motivation behind their decision also has to do with the fact that Colorado launched the Amendment 64, which outlines the drug policy for cannabis. The general public was open to the idea, and the new rules caused the market to explode from all points of view. The number of immigrants begun to rise rapidly. The normal response was a boost in the real estate market prices and listings, so there is no wonder why the changes happened quickly and on a large scale.
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