These are very special times in the metro Denver real estate market. Home prices are up, rents are up, inventories of homes both for sale and rent are low and our future outlook continues to look great. We talk about some aspect of real estate every month in this Newsletter but sometimes I think it can be hard to realize just how terrific our real estate market is without taking a step back and looking at the big picture. A great way to do this is to check out the recent press headlines and review the real estate news about our local market. In a word, it is amazing!
New record broken in Denver housing market
“The average price of single-family home in the metro continues to creep up, as it hit $543,059 in April. The premier market, homes priced between $500,000 and $749,000, is considered the ‘new norm,’ according to a spokesperson with DMAR. Median days on the market in this price segment now stand at 7 days.”
Denver Business Journal – 5/3/18
Denver Home Price Growth Accelerates
“Metro Denver existing home prices rose at the fifth fastest pace in the nation, up 8.4 percent in February compared to the same month in 2017, according to the S&P CoreLogic Case-Shiller Index. Prices have risen for five straight years because a dwindling inventory of for-sale listings and Colorado’s strong population growth. That low supply and high demand dynamic continues to push prices higher.
Charles Roberts, president of Your Castle Real Estate has “no reason to believe anything’s going to change in any foreseeable future.” “We do not have enough housing because for years we underbuilt, and for years we still had population growth. And we’re just beginning the process of closing that gap, but we’re years away,” Roberts warns.”
Colorado Public Radio – 4/25/18
Denver-area home prices just won’t stop. Gains accelerate after slowing down last year
“Metro Denver home price gains, after running in the 7 percent range for most of the past year, accelerated back above 8 percent in February, according to the S&P CoreLogic Case-Shiller Indices.”
Denver Post – 4/24/18
Home-resale price growth still rising in metro Denver, report says
“Metro Denver’s year-over-year gain in home-resale prices stood at 8.4 percent in February, almost an entire percentage point higher than the annual gain the previous month. That’s according to the latest S&P/Case-Shiller Home Prices Indices report, released Tuesday. January’s year-over-year gain in Denver-area resale prices was 7.6 percent, according to the closely followed monthly report series.
In February, only three major U.S. cities showed greater year-over-year price increases out of 20 big markets tracked by the Case-Shiller report series: Seattle (up 10.1 percent from the previous February), Las Vegas (up 11.6 percent) and San Francisco (up 10.1 percent). Denver surpassed Los Angeles this month, though just by a hair — the California city was up 8.3 percent from the previous February.
Denver tied with Detroit with an 8.4 percent annual gain. The average year-over-year increase for all 20 cities, as well as the national price gain, was 6.3 percent in February, the report said.”
Denver Business Journal – 4/24/18
Movin’ on up: Denver population climbs the charts
“The U.S. Census Bureau confirms what anyone driving around the Denver area around rush hour can easily ascertain: The metro is growing.
Denver is one of 28 major U.S. areas that are growing by at least 1 percent a year. Denver’s rate is a hearty 1.77 percent — faster than Seattle’s, Atlanta’s and Phoenix’s — but not as fast as the major Texas metros.”
Denver Business Journal – 4/23/18
Report: U.S. Needs 7.3 Million More Homes
“Housing construction has not kept pace with population growth in the U.S. for more than a decade, and in order to stymie shortages across the nation, builders will need to construct 7.3 million more homes, according to a new report. The Up for Growth National Coalition, a group of real estate developers, owners, and builders of affordable housing, finds that since 2000, builders in about 22 states and the District of Columbia have not constructed enough homes to sustain population growth.”
Realtor Magazine – 4/17/18
Homes in Denver continue to sell really, really fast
“Denver homes continue to sell faster than the rest of the country, a pair of new reports indicate.
Online real estate company Zillow reported that last year, it took 81 days to sell the median U.S. home, but in Denver, it took only 52 days to sell the median home in the city.
Only homes in San Jose (41 days), San Francisco (43 days), and Seattle (47 days) sold faster than homes in Denver. And according to Zillow, June was the month when homes sold the fastest both nationally and in Denver. Nationally, homes sold in 73 days in June, and in Denver, homes sold in 47 days that month. And Denver’s housing inventory continues to remain low. The months supply of inventory in Denver is 0.9 months, tying the city with Seattle for the nation’s second-lowest inventory level, behind only San Francisco, at 0.7 months.”
Denver Business Journal – 4/17/18
Homebuilding Isn’t Keeping Up With Growth, Development Group Says
“America’s housing shortage is more wide-ranging than cloistered coastal markets, stretching from pricey locales such as California and Massachusetts to more surprising places, such as Arizona and Utah.
Some 22 states and the District of Columbia have built too little housing to keep up with economic growth in the 15 years since 2000, resulting in a total shortage of 7.3 million units, according to research to be released Monday by an advocacy group for loosening building regulations. California bears half of the blame for the shortage: The state built 3.4 million too few units to keep up with job, population and income.”
Wall Street Journal – 4/16/18
U.S. News Unveils the 2018 Best Places to Live
“U.S. News & World Report, the global authority in rankings and consumer advice, today unveiled the 2018 Best Places to Live in the United States. The new list ranks the country’s 125 largest metropolitan areas based on affordability, job prospects and quality of life. Austin, Texas, took the No. 1 spot for the second year in a row, with Colorado Springs, Colorado, taking the No. 2 spot, bumping Denver, Colorado, to No. 3. Des Moines, Iowa, moved up 5 spots to No. 4, with Fayetteville, Arkansas, rounding out the top five for the second year in a row.”
U.S. News – 4/10/18
Editor’s Notebook: Is ‘more’ better for Colorado?
“If you are among those Coloradans uneasy about growth, and there are many based on municipal elections results last fall, you owe it to yourself to look up two items in the news recently. They say a great deal about the city we live in today and what it may look like in the future.
The first is the announcement of an inaugural effort by a technology coalition of local companies and the state of Colorado to identify and recruit tech workers to the Denver metro area to fill the many jobs that evidently go unfilled these days in the burgeoning tech industry here. You’ll be glad to know the state of Colorado’s Office of Economic Development and the Downtown Denver Partnership are part of this broad effort to get more Californians to move to Colorado. Ask any Colorado native of ordinary means that’s not working in tech and looking for a home today and you’re likely to hear a version of this story: “We had the down payment and good credit, but people from out of state came in and outbid us with a cash offer and we lost the sale!”
It’s happening with increasing frequency. Even below-average homes in decent areas are selling above the asking price. Great news if you’re a seller; not so hot if you’re a young couple trying to buy your first home and you’re not in tech or don’t have a trust fund.”
Denver Business Journal – 4/6/18
March sets record high for home prices – again
“The average and median single-family home prices in the metro both set record highs in March, reaching $522,277 and $440,875 respectively. March saw 6,335 new listings added to the housing market, which was almost a 37 percent increase from February. This was slightly offset by 5,674 listings being placed under contract. But according to DMAR, the number of listings going under contract indicates strong homebuyer activity.”
Denver Business Journal – 4/4/18
Denver area housing market to see big value increase in 2018
“The Denver-area housing market will appreciate more than any other market in the U.S. outside of Washington state in the next year, according to a new report. Veros Real Estate Solutions of California predicts residential market values in the Denver-area housing market will increase 9.9% in value in the next year. Nationally, housing should appreciate by 4.3 percent in the coming year, according to the report.”
Denver Business Journal – 3/29/18