Denver Home Price Trends
Whether you are entering the Denver real estate market as a buyer or a seller, understanding current price trends and how they affect you will be essential to helping you make informed decisions that are in line with the current market.
Higher Prices and Smaller Inventory Favor Sellers
When looking at real estate prices, buyers and sellers often look at the inventory of available houses and the price of those houses when determining what type of market it is. Denver home prices have risen steadily over the past year according to ZipRealty's Housing Trends Report. While the increases have not been large, prices have gone up, and that fact is worth noting.
In January of 2013 buyers in the Denver real estate market paid an average of $236,500 for homes they purchased. This increased to $256,450 in January of 2014. The increase was just 8 percent, but any increase is worth noting.
While prices were going up, inventory was shrinking perhaps as buyers were taking advantage of low mortgage rates throughout 2013. In January of 2013, Denver had 8,379 homes on the market. This dropped by over 1,000 homes to 7,079 in January of 2014, a decrease of 16 percent.
This combination of increased prices and decreasing inventory tends to point to a market that favors sellers. Buyers who are entering this market should be aware of the fact that sellers have the upper hand, and tailor their negotiation efforts accordingly.
Homes Continue to Sell Quickly
The short time on market enjoyed by Denver homes for sale is an indication of the popularity of homes in this area. While the length has gone up, the number is still low. In January of 2013 homes were staying on the market for an average of 25 days. This increased to 32 days in January of 2014. while this does represent a 28 percent increase, in comparison to other communities, the total amount of time is still quite low. This is a benefit to sellers who want to sell their homes quickly.
Buyers Find Many Appealing Neighborhoods in Denver
While the market may favor sellers slightly, it is still a market where people are buying. For those in the market for a new home, Denver's many distinctive neighborhoods have much to offer. The larger lots and tree-lined streets of Belcaro are popular with many buyers. With home prices from $300,000 to over $1 million, Belcaro has something to appeal to buyers on most budgets, and the homes are distinctive because of their large lots.
The picturesque Victorian homes in Cheesman Park are also an appealing option, and this neighborhood also has condominiums and town homes for sale. Prices here vary tremendously because of the varied real estate options, and the amenities, including many local dining options, bars and shopping, make it even more appealing.
City Park West is another popular neighborhood, and this one has seen some of the most improved Denver home prices in the area. These homes are close to the zoo and many other city amenities, and the historic homes here are quite beautiful with ornate woodwork and elaborate built-ins.
Denver has many appealing neighborhoods and homes that are appreciating well. For buyers, this makes it a great place to invest in real estate. For sellers, this means selling is not difficult. Overall, it is an excellent market for people on both sides of the real estate equation.