August 2017 Market Report
1. Prices Are High, But Demand Has Slowed
As it does every summer, our housing demand has slowed down quite a bit. While home prices have likely reached a high point for the year, currently, the demand isn't there to support them. The result is wide spread price reductions; many sellers expected a quick sale of their home for over asking price with multiple offers because of what they saw this spring.
Expect activity to pick up mid way through August as people get back from vacation and school starts again. Through the fall, the market will favor sellers with certain areas (i.e. Highlands Ranch, Arvada, to name a few) and certain price points (under $300,000) remaining very competitive. Also look for home prices to gradually decrease each month until December.
2. How Much Is Your Home Worth?
In a real estate market like Denver's, your home's value fluctuates monthly. Since 2012, homes in Denver have appreciated 10% every year. If you've bought a home in the past several years, you are likely in a great equity position. Don't rely on Zillow for an accurate estimate as their numbers are likely off 6-20% (see more below). If you're curious about your home's value, contact me and I'll send you a free market analysis that will tell you what your home could sell for in today's market.
More: The Truth About Zillow
3. Rents Continue To Rise
One study by Apartment List found that rent in Denver has increased 52% in the last 10 years. That puts us in 3rd place behind San Jose (57% increase) and Seattle (56% increase). The common factor shared by those three cities is job growth that is out pacing new housing growth. The Colorado Department of Labor reported 118,000 job openings advertised online in the month of June while Denver only has 36,800 people that are willingly unemployed. Denver's booming economy continues to be a major factor in housing demand as people move from all over the nation to live and work here. It means that rents will continue to rise.
4. What Will Denver Look Like In 10-15 Years?
Denver is an amazing city, and an amazing place to live. Recently, as Denver's popularity has surged, so has its population. Like it or not, Denver is changing as it grows. The fact remains that with all of these new families and new people moving to Denver, we still simply don't have enough places for everybody to live for.
The major issues are, local government delaying or interfering with new housing development, lack of affordable housing, and labor shortages in the construction industry. If these issues are not resolved, look for Denver's home ownership rates to mirror San Fransisco's and Seattle's in the next 10-15 years. San Fransisco (36%) and Seattle (46%) had many of the same housing issues that we face currently. Currently our home ownership rate is 61% and dropping as more people choose to live here even if they can't own a home.
For questions about how to buy or sell your next home, feel free to read through some of my other blogs or give me a call; I'd be happy to answer any questions you may have!
More: How To Buy In A Seller's Market
More: How To Win In A Multiple Offer Situation