Denver Part of a Pricey Home Inventory Surge
Zillow recently came out with a study indicating that the inventory of higher priced homes is growing in the Denver metro area. This also means that the inventory of lower-priced homes is dropping. As a real estate professional in Denver, I can say that from first-hand knowledge, Denver is getting pricier by the home sale. Here in LoHi, homes are selling like crazy, and for good prices. Elsewhere in the Denver metro area, the median price rose to $415,000, growing 5.5% from last year. Houses with median prices of $247,000 dropped down 4.5% from last year. Nationwide, the inventory of homes on the market rose 11.8%, with most of these in the middle and top part of the market.
What does this mean for homebuyers?
Well, for first-time homebuyers, this makes it difficult to find a house in a desirable area, assuming that they usually have a smaller budget. After earnest money and down payments, that doesn’t leave a whole lot in these buyers’ pocket for an expensive place. Because of this, a first-time homebuyer may decide to buy outside of the city in hopes that their property will appreciate, so that later they can move into the city.
Fewer Denverites are using cash to buy homes, down to 22.4% from 27.7% in 2013. That’s one of the lowest percentages in the United States. This means more people than ever are financing in Denver. What’s interesting is that most of the cash sales are in the lowest tier of home price, which has a median of $152,900.
For more experienced homebuyers, this means that their properties are appreciating and Denver is moving up in value. There is low inventory of homes in hot areas, such as LoHi, Highlands, the Golden Triangle, and Wash Park. Low inventory + high popularity = prices on the rise.
Edgewater, for example, is on a major upswing lately. Homes are going on the market for $250-$300 per square foot. That’s higher than some LoHi homes! Edgewater is located just outside of Denver, sandwiched between Lakewood, Wheat Ridge and Denver. The little mile square foot city boasts increasing value at a rapid rate. The St. Anthony’s redevelopment, Sloan’s Lake, the Whole Foods that is rumored to be coming soon, and numerous townhome developments right outside of Edgewater have all upped the popularity of this town. It is seen as an easy alternative to Denver proper, with the amenities all close by. Many first-time homebuyers are moving in, and the residents who have been here since the 50’s are excited to have higher home values (save the younger, louder neighbors). Prices in Edgwater are still hovering around a median of $260,000 – $290,000, which is a dramatic upswing from even just a few years ago.
The redevelopment and rising population of Denver is obvious. Denver’s prices are rising and its residents are willing to pay. For more information, contact me, Liz Richards, at 303-956-2962, for a complimentary consultation on your home. I can share my knowledge of these hot Denver neighborhoods and give you my take on it!
Photo by JC Buck