Home prices in Denver continue to gain, while inventory remains unsustainable.
July saw home prices continue to rise at a double digit rate, rising 12.9 percent from prices this time last year. The average home sale price has now risen to $412,312 (including both attached condos and town homes and detached single-family homes) According to the latest data from the Denver Metro Association of Realtors. Denver area Single-family homes average sold price rose 12 percent year-over-year in July to $460,623, while condos and town homes also rose 12 percent to $285,531.
As the home prices rose, the number of active listings on the market for July dropped .03 percent to 7,468 listings. Although this number is low for the usual number of listings for July, it still rose 10 percent from June. This monthly rise is good news for Denver’s current market which is seeing historically low inventory and high prices for well over a year now, according to Denver Business Journal’s Molly Armbrister.
Anthony Rael, Chairman of DMAR’s Market Trends Committee said, “We would love to see the appreciation slow,” again noting that the rate of residents moving to metro Denver is unsustainable. “If we’re having this conversation about double-digit increases for the third year in a row, we’re going to reach a critical level.” The Denver housing market has been on the rise for years since it emerged from the recession, leading to the current inventory shortage we’re dealing with currently in Denver.
The Denver City Council is considering the establishment of the city’s first permanent fund for affordable housing, but council hearings on the matter have been pushed back to September. The plan includes details of funding using a combination of increased taxes and new development fees.
Consumers Love Looking for Homes Online.
Americans spend an average of 55 minutes per online visit with real estate apps on their phones, according to new research unveiled by Google.
Basically, “customers roll over in the morning and start looking at real estate listings,” John Thornton, a partner in Google’s real estate business, said about the study’s findings.
Of those Google surveyed, sixty-nine percent call “shopping for real estate fun” from their phone and online. Many Americans are so addicted to home shopping online that 64 percent say they keep checking out houses and home values even after they purchase a home.
The study also finds that people start hunting on real estate sites three years before they buy on average. In addition, only one in five of the people checking out homes on real estate apps and websites are actually in the current market to purchase a home, the study found.
Good Schools Boost Home Values.
Home values can significantly improve if it is located near a highly rated school. According to the new ATTOM Data Solutions 2016 Schools and Housing Report, homes in ZIP codes with at least one good elementary school have values about 77 percent higher than in ZIP codes without highly ranked schools close by.
The research looked at home values and price appreciation against 2015 average test scores in nearly 20,ooo elementary schools across over 4,000 zip codes. The results showed that ZIP codes with at least one good school (overall test-scores had to be at least one third higher than the state average to be considered a good school) had average an home value of $427,402- 77 percent higher than the home value of $241,096 in 2,774 ZIP codes without any “good schools.”
Certain areas of the country saw that the home values in ZIP codes with at least one good school were at least 95 percent higher than home values in ZIP codes without any good schools, including Detroit, St. Louis, Baltimore and Flint, Mich.