But in 2019, it clearly experienced a cooling trend where home values appreciated by a mere 1%. During the latest twelve months alone, the Denver appreciation rate has been 3.26%, and in the latest quarter, the appreciation rate has been 0.92%, which annualizes to a rate of 3.75%. Therefore, finding a good Denver real estate investment opportunity would be key to your success. Norada Real Estate Investments The previous record was $460,000 recorded in July, August, & September 2020. The Seattle housing market is not likely to go through any kind of cooling-down phase in the foreseeable future. The median closing price on a single-family home was $519,900 in October, an increase of 1.9% from September and 14.3% over the past year. Another popular neighborhood and expensive neighborhood in Denver is Cherry Creek where the median home price is around $898,000. And given the job market and quality of life, they’ll probably stay here to raise families, generating more demand for the Denver housing market. So what is keeping demand so strong given such a difficult year? Housing Market Forecast Moving into 2021. Marco Santarelli is an investor, author, Inc. 5000 entrepreneur, and the founder of Norada Real Estate Investments – a nationwide provider of turnkey cash-flow investment property. Demand would raise the price of your Denver investment property and you should be able to flip it for a lump sum profit. The average price of a home in the Denver metro area in August was $539,252, a year-over-year increase of 11%. There are more than enough homes for sale to meet the demand. Two-bedroom apartment rents average $1830 (a 1.97% decrease from last year). It is the largest and capital city of Colorado, home to roughly 700,000 people. Market Data, Reports & Forecasts Boulder is located in northern Colorado. https://www.denverpost.com/2018/03/06/river-mile-denver-elitch-gardens-redevelopment/, Colleges The affordability crisis still exists in the Denver Metropolitan Area. – The national homeownership rate is on the decline for the first time since 2017. You cannot afford to miss out on this growing and appreciating real estate market. Can you run the same kind of statistics for the foot hills area like you did for the denver area. Generation X made that decision, too, which is why roughly a quarter of residents are under the age of 20. The residential median home price in Denver hovers around $475,000 as of October 2020. https://www.littlebighomes.com/real-estate-denver.html After all, when a college like Evergreen State that scares off students or simply fails to attract them like many classics, private liberal arts schools who found themselves rendered redundant after brand name schools opened their doors, there’s less demand for the rental of the house as a permanent residence. The factors driving prices up are an increase in demand for housing, tight inventory, and record-low mortgage rates. Furthermore, the Classic Market segment continues to sell for remarkably high percentages of the list price. As demographics change and baby boomers retire, you’re seeing Millennials who may not be ready to buy houses. Let’s take a look at the number of positive things going on in the Denver real estate market which can help investors who are keen to buy an investment property in this city. Polis says Colorado prisoners shouldn't get COVID-19 vaccine before free people, How the Jehovah's Witnesses adapted to the pandemic: "You can't be spreading the good news and spreading something else", An expired domain name led to dead end for Colorado unemployment filers Monday. Downtown is the most walkable neighborhood in Denver with a Walk Score of 93. In Colorado Springs, another popular market, the average home prices have reached $403,972. The good news for Denver area home sellers is that lead economists forecast that the housing market in Denver in 2021 and beyond will remain strong. The average sale price of a home in Denver was $510K last month, up 15.9% since last year. It has become the 19th-most populous city in the nation. The Aurora real estate market 2020 is seeing rising prices & rents. The Denver metropolitan area is home to around 2.7 million people. The average sales price for detached properties increasing by 1.97 percent since April 2019. You’ll find strong ROI numbers for the Denver real estate market. However, U.S. News and World Report listed Denver as the third best place to live in the US, while it ranked the 37th best place to retire. You can quickly begin evictions if they haven’t paid the rent. Therefore, in the long term, the Metro Denver real estate market remains strong and skewed to sellers, due to persistent imbalance in supply and demand. This figure also corroborates with Zillow's positive forecast, so the home prices in this region are expected to increase by at least 3-6% in the next twelve months. This article aimed to educate investors who are keen to invest in Denver real estate. ‘A Lot Of Patience’: Pandemic Doesn’t Slow Denver Housing Market By Shawn Chitnis August 5, 2020 at 8:47 pm Filed Under: Colorado News , Denver News , Denver Real Estate Many of those 30 million tourists would love to have rented a house or apartment for their visit instead of a hotel. A third of the Denver-metro area rents. In the last month, there was a record-high for the average sales price for both single-family detached and attached properties at $625,100 and $393,733 respectively, according to the Denver Metro Association of Realtors. According to Realtor.com, there are 69 neighborhoods in Denver, where properties are available for sale. https://www.dmarealtors.com There are fewer homes for sale than there are active buyers in the marketplace. The year ended with an average home price of $486,695 and a median of $420,000. In conclusion, we can say that these numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The highest number of sales were in the $500,000 to $749,000 range. Detached homes are the preference for many homebuyers today. They estimate that the probability of rising home prices in Denver is 76% during this period. This is good news for real estate investors looking to buy a rental property in a strong housing market. Here are the ten neighborhoods in Denver having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com. "The 2021 housing market will be much more 'normal' than the wild swings we saw in 2020. https://www.5280.com/2017/04/everything-know-denvers-real-estate-market-wrong Another top employer in the Denver Metro Area is the State of Colorado. The Department of the Interior includes such agencies as the Bureau of Land Management, Office of Surface Mining and Reclamation, Bureau of Reclamation and all have offices in or near the Denver Metro area. But home prices — after revving at a 12.8% annual pace in October — will run a more modest 5.4% locally, ranking Denver 33rd on that measure, tied with Columbia, S.C. “The steadiness in mortgage rates in the first half of the year followed by the rise of mortgage rates in the second half of the year helps dampen some of the price momentum, as affordability becomes a bigger hurdle again for homebuyers,” said Danielle Hale, chief economist with the residential real estate portal, in an email. The median monthly rent here – and that includes one-bedroom apartments – is around $1100 a month. https://crej.com/news/airbnb-31-billion-gorilla-room The previous high was in 2019 at 1,657. With a 3 bedroom detached single-family home, you could receive well over $2000 per month in rent. The median sale price in Denver peaked in 2018, but it's positioned to be higher in 2020 than it was in 2019, based on the current year-to-date statistics. Downtown Denver saw multiple infill projects downtown ten years ago. Then there’s the business traveler. Mar Lee, where renters pay $1,010/mo on average. Here is another short and crisp Denver housing market forecast by “LittleBigHomes.com” for the 3 years ending with the 3rd Quarter of 2021. Single-family residences sold for an average price of $599,463, a 10% year-over-year increase. You could invest in rental real estate near any of these colleges, knowing you could rent or sell to people that simply want to live in the area if student demand slacks off. As compared to July, home sales dropped by 13% in August. Home values rose so much over the past six or seven years that affordability became an issue for a person earning the median income in this area. These values (by Zillow) are seasonally adjusted and only include the middle price tier of homes. The neighborhoods in Denver must be safe to live in and should have a low crime rate. According to RENTCafe, 151,260 or 51% of the households in Denver, CO are renter-occupied while 143,098 or 48% are owner-occupied. That added inventory from struggling borrowers will likely be spread out over several months rather than hitting all at once, giving the market more time to absorb the new supply. Months Supply of Inventory in the metro Denver housing market has dropped to 4 weeks, which is very low. Some of that reflects the surge in older millennials who moved here after the last recession and who fueled strong buying demand. The current metro area population of Denver in 2020 is 2,827,000, a 1.33% increase from 2019 (Macrotrends.net). The foot hills of denver, co is the place to go . Note that you could get much more for a spacious single-family home for rent or large condo. October continued to defy the cooling trend of the winter season as new records were broken by both buyers and sellers. Existing Home Sales Rebound. Denver housing market will continue to heat up in 2021 as shown in the forecast given below. Denver and the entire metro area remains a seller’s real estate market, especially in the $300,000 to $399,000 price range where it's getting even more difficult for buyers to compete. That pulls the average age up. There remained about a month's supply of residential single-family homes (attached plus detached) in the price range of $300,000 to $499,999. Single-family residences sold for an average price of $559,290, an increase of 2% year over year. Assuming a buyer provided a 10% down payment, the principal and interest payments on the mortgage would have been $1,861 a month. Post was not sent - check your email addresses! According to local brokers, the sales could have been even more if they weren't short of supply. There are currently 272 properties in Denver, CO that are in some stage of foreclosure (default, auction, or bank-owned) while the number of homes listed for sale on RealtyTrac is 320. GOP staffer asked to leave Colorado Capitol over COVID-19 diagnosis says she was cleared by doctor, Lauren Boebert leads Colorado Republicans in pushing Trump's baseless election claims, Brauchler: Prioritizing prisoners over the elderly for a COVID vaccine is wrong in every way. Homes in the Denver housing market were selling at an average of 29 days. This is the first time prices for single-family homes have surpassed $600,000. As of now, the Zillow Buyer-Seller Index (BSI) shows that Denver is currently the seller's real estate market which means that demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. I think recreation , mountain homes are the next big investment opportunity, with incomes rising and a low unemployment, more available funds creates more discretionary spending such as mountain properties purchases as 2nd homes for recreation and vacation and exit opportunities for downsizing at retirement time. Below is the monthly report of the “Metro Denver housing market” from REcolorado with numbers for September 2020 compared with September 2019. The percent of Denver homeowners underwater on their mortgage is 4.7%, which is higher than Denver-Aurora-Lakewood Metro at 3.9%. September’s 6.54 million in sales has left the market with only 2.7 … In a balanced real estate market, it would take about six months for the supply to dwindle to zero. His coverage areas have included residential real estate, economic development and the Colorado economy. If Forbes could recommend this as a Denver real estate market investment strategy in 2016, it can be seriously considered today. Denver Metro Area is still a strong seller’s market across the board except but the historically low mortgage interest rates are helping buyers as far as housing affordability is concerned. All price ranges in the Denver metro area were still signs of a warm seller’s market. Denver is a key trade point for the country, and home to several large corporations in the central United States. It has a low unemployment rate of 2.3% as of Dec 2019, according to the U.S. Bureau of Labor Statistics. As we venture into the third quarter, the market appears to … Extremely low amounts of inventory helped sellers to move their properties quickly in the $300,000 to $399,000 price range. #6. The previous high was in 2019 at 5,144 sales. The typical value of homes in the Denver-Aurora-Lakewood Metro is $462,724. Its proximity to Denver has long kept it in the realm of the Denver suburb. Denver South is home to 7 Fortune 500 companies. For years, the Denver area housing market was so scorching that it seemed nothing could dial down the heat — and prices haven't dropped thus far, … Desirability brings demand. There was not a lot of room for negotiations when multiple buyers were competing for the same home. The average sale price per square foot in Denver is $303, up 15.4% since last year. Active listings dropped by a 1.91 percent drop from December because home buyers placed 43 percent more homes in pending status month over month which diminished the housing inventory surplus. The housing data provider’s May Home Price Index and HPI Forecast report predicts a year-over-year home price decrease of 6.6% by May 2021. Some of the popular neighborhoods for buying a house or an investment property in Denver are Jefferson Park, Berkeley, Park Hill, Cheesman Park, Congress Park, Hilltop, Sunnyside, Capitol Hill, Highland, Platte Park, Stapleton, Reunion, Cherry Creek, Aspen, and Washington Park. Yes, the Denver real estate market for those who want to cater to students is diverse. Active listings across both detached and attached single-family homes at the end of October 2020 stood at 4,821, a record low for October by nearly 2,000 listings. December 2, 2020. ... Forecast key 2021 housing trends. It has some public transportation and is very bikeable. Denver Housing Market Forecast for 2021 Despite the COVID-19 pandemic taking a toll on the national economy, the Denver housing market is still hot! These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Denver. Rising home prices and shortage of starter homes have not left Millennials many choices but to delay homeownership. Denver home values have gone up 3.7% over the past year and the latest forecast is that they will rise 6.4% in the next year. (Detached) 4,352 closed transactions represent the highest October on record and an increase of 17.34% from October 2019. October also saw a record-low of months of inventory at an astonishing 0.81. This is greater than the Denver-Aurora-Lakewood Metro value of 0.1 and also lower than the national value of 1.2. Nationally, the houisng market is breaking all the records despite the COVID-19 pandemic. Yeshiva Toras Chaim Talmudical Seminary / W Colfax Ave, Metropolitan State College of Denver / Wazee St. The Denver housing market is very competitive. This is a good time to invest in the Aurora real estate market. Moreover, it's even harder to take out a mortgage for those who have student loan debt. So, you’d find a lot of distressed sellers in this area and get some discounted off-market deals. In the entire residential market, there was a 34.21 percent drop in the number of closed homes and a 35.19 percent drop in sales volume month over month in January which was a reflection of the lower end of 2019. Investing in Denver's real estate can be a worthy investment due to a steady rate of appreciation. As compared to July, prices saw a marginal increase. The previous record was $540,890 recorded in July 2020. Lights will shine brighter for Denver home…, Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Twitter (Opens in new window), Click to email this to a friend (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Tumblr (Opens in new window), Submit to Stumbleupon (Opens in new window). After a remaining almost flat throughout 2019, with a mere 1% rise in prices, the Denver housing market was showing little signs of gains. If they don’t comply with notices, then you can go to court. For the last few years, soaring prices in Denver have caused some of their residents to buy in northern Colorado Springs and northern El Paso County. Even as Denver home prices have reached new heights, the market remains attractive to residential real estate investors in the $300,000 to $399,000 price range. Denver Metro saw a 2.4% increase in the number of homes sold through the third quarter of 2020. However, home sales increased by 12% year-over-year, as reported by REcolorado®. 30251 Golden Lantern, Suite E-261 Check this page each quarter for updates to the Denver Real Estate Market Forecast. The population has increased by 1.33% from 2019. https://www.recolorado.com/market-statistics/market-watch.aspx We’re not going to joke about the over-hyped medical marijuana industry there today. Home sales in metro Denver rebounded in 2019, increasing 3.4% after falling 4.6% in 2018. The Denver-Aurora, Colorado statistical area is home to about three and a half million people. Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. (Residential) 0.81 months represents the lowest number on record. It was also the first time the average sale price for both single-family homes and condos topped the half-million-dollar mark. We’re standing by to help you take the guesswork out of real estate investing. https://www.recolorado.com Jobs are a major reason why people move to Denver in the first place. A third of the population of the Denver-metro area rents. We’ll address the biggest factor pulling people to the Denver housing market next. There’s no limit on late fees. The median age for purchasing a home in the U.S. is 34 and many millennials are anxious to get a place of their own. 36% of the apartments fall in the price range of $1,501-$2,000 while 40% fall in the price range of $1,001-$1,500. Harvey Park South, where the average rent goes for $1,279/mo. Assume that builders and sellers had met buyer demand, keeping prices flat over the year. Many variables could potentially impact the value of a home in Denver in 2020 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. The average single-family home price was down from its summer highs, but higher year over year by 6.86 percent to $532,494. All you have to do is fill up this form and schedule a consultation at your convenience. https://www.collegesimply.com/colleges-near/colorado/denver, Filed Under: Growth Markets, Housing Market. The worst annual change in home values in the Denver Market was -4% in the twelve months ended with the 4th Quarter of 1987. https://realestate.usnews.com/places/colorado/denver ... Denver-Aurora-Lakewood, Colo. 12.5%. As long as buyer demand continues to outpace supply, we will see prices go up. You don’t have to give tenants notice that you’re entering a property. The Metro Denver housing market remains consistently hot. Low interest rates are expected throughout 2020 and price growth should continue at a more modest pace as new supply is added to the market at a slower pace. Sorry, your blog cannot share posts by email. Should you consider Denver real estate investment? Due to the low month’s supply of inventory, the Denver housing market is persistently skewed to sellers – which means that the demand from buyers is always exceeding the current supply of homes for sale. Low mortgage rates help but don't eliminate, the risk that the housing market could still face an affordability crunch if home prices continue to rise at a rapid pace. Buying investment real estate in a college town is high-risk. The average closing price was $625,100, a 4.5% gain from September, and an 18% increase over the past year. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. Lights will shine brighter for Denver home sellers than buyers in 2021, Metro Denver’s housing market has staying power, but it will need to get through a bumpy winter, Dick Monfort’s McGregor Square project announces more commercial tenants, hotel name, Brighton, Adams County preserve nearly 80 acres of farmland from development, Flat-fee real-estate brokerage firm enters Denver real estate market, Homebuilders in metro Denver on track for an unexpectedly stellar year, despite pandemic, | Economy and Residential Real Estate Reporter — The Denver Post, 5.7 million “missing” households since the Great Recession. In that scenario, it might be best to wait until 2021 (or at least the latter part of 2020) to buy a house. The previous record was in September 2020 of 0.72 months. The average weekly wages for all industries in Denver Area are $1,265 (the U.S. = $1,093). Due to the low month’s supply of inventory, the Denver housing market is persistently skewed to sellers – which means that the demand from buyers is always exceeding the current supply of homes for sale. Why have models of Colorado’s coronavirus trajectory been off? The historical change in home values has been calculated until the 3rd Quarter of 2018. For buyers, the good thing is that this area has cooled off. Here are some foreclosure statistics of Denver, CO. Colorado has had the lowest rate of mortgage delinquencies in any state of the United States. Metropolitan Statistical Area (MSA) reports show housing market statistics that focus on the Denver metro region with a relatively high population density at its core and close economic ties throughout the area. It is exactly one mile high above sea level and has the largest city park system in the nation, with 14,000 acres of mountain parks and 2,500 acres of natural areas. https://denverrelocationguide.com/largest-employers-in-denver Courtesy of Denver and Colorado real estate news, neighborhoods — The Denver Post, The Denver Post. In March 2020, the average sale price for all residential single-family homes (attached plus detached) was $513,526, up 7.31% since March 2019 – setting a new record high. https://www.avail.co/education/laws/colorado-landlord-tenant-law, Short term rentals Despite recent cooling off, there are several reasons to consider long term investment in the Denver real estate market. Is It The Right Time To Invest In Real Estate? As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. However, amid fears stemming from the ongoing pandemic, there were an unprecedented 761 home sellers that withdrew their homes from the metro-Denver real estate market in March. Furthermore, the Classic Market segment continued to sell for remarkably high percentages of the list price. The Denver Home Price Index has increased for the last 26 consecutive quarters (data up to 3rd Quarter, 2018). Denver’s unemployment rate has been well below the national average for years. And that’s not going to happen soon. A lack of inventory and continued demand will keep sellers firmly in control of metro Denver’s housing market next year, but higher mortgage rates will make homes less affordable and keep a lid on future price gains, according to a forecast from Realtor.com.