Ah, the year in real estate in Denver. It's beginning to sound redundant. Inventory is low. Demand is high. And home prices increased significantly again.
The Denver Metro Association of Realtors released their January market trends report that looked back over 2017. For stat geeks, it's a gold mine of information. Here's what I took from the report:
Growth slowed ... slightly
The median home price in Denver metro area increased by 8 percent, which is slightly lower than the double digit increases we've seen in recent years.
But don't expect increases to stop
Why? Consider these stats:
-- In 2010, roughly 600,000 people lived in Denver and there were 18,000 listings in November that year.
-- In 2018, roughly 700,000 people live in Denver and only 4,000 listings were active in November.
Basic economics say that when demand increases and supply decreases, prices will rise.
What's the most competitive price point?
There are a couple ways to look at it, but in general, if you're buying a residence between $300,000 and $400,000, you've got some company.
Home between $300-$400k sold for 100.5% of the list price, an indicator of tough competition.
What was the least competitive price point?
Competition drops above the $750,000 price point.
Homes sold for between $750,000 and $1 million went for 98.4% of the list price. That trend is even more pronounced for homes for homes over $1 million, with those going for 96.9% of the list price.
Read the full report here.