Last month, the average Denver single family home price exceeded half a million dollars. This local milestone represents years worth of equity climbs, low inventory, and the changing Mile High City as a whole.
According to Susan Adams, "For the first time ever, our average home prices exceeded $500,000. This isn't especially surprising given the record home prices, low inventory, and high demand that we've seen for the last few years."
Since 2014, Metro Denver has seen record high home prices and record low days on market... especially in the entry-level and more affordable home sectors. This steep climb into Denver’s current [intense] seller’s market is due largely to the area’s listing shortage. There are far too few homes on the market to meet the needs of local first time home buyers, not to mention the transplants wanting to live in and around lovely Denver. These factors ensure that home equity will continue to rise as the months of 2018 progress.
And speaking of equity increases, the average home price (for both attached and detached) increased by 12% since this time last year! That’s almost double metro Denver’s historical average - 2017 was a banner year for residential real estate value.
However, concerns have been raised about affordability and the changing face of Denver and it’s residential composition. With slow wage growth in Colorado and quickly rising home purchase prices, many Denverites are struggling.
Live Urban loves the richness of Denver’s diverse communities, which is why this $500,000 milestone both excites and cautions us. A new ballot measure is making its way across the front range this summer, gaining signatures in hopes of a November 2018 vote - if passed initiative 66 would limit new builds in and around the Denver area. With our current listing shortage driving entry-level and affordable homes out of the reach of many, this legislation could further change our diverse city and drive many out.
If you’re concerned about home affordability in and around The Mile High City [as we are], we encourage you to educate those around you on Colorado Initiative 66 and and refrain from signing this ballot initiative.
Learn more about how Initiative 66 could change Denver real estate HERE.