The Mile High City has new meaning in this rocky mountain city lately. In just one month, the median sales price of a single family home rose to $420,000. in April, 2017, from $406,000. in March, 2017. Never before has Denver experienced such a steep increase in median sales prices in such a short amount of time.
Denver’s neighborhoods with lower property values in 2015 are now seeing the largest percentage increases in home values. However, those lower tiered price points are seeing a dramatic decrease in the number of units sold. For example, single family homes and condominiums priced no more than $99,000. dropped sales percentages by 38.1% and 61.27% respectively. Single family homes and condominiums priced between $100,000 – $1999,000. sold 60.2% and 25.23% fewer units respectively and single family homes and condominiums priced between $200,000.-$299,000. sold 30.91% and 22.97% less units respectively.
Very interestingly, higher tiered price points in Denver’s single family homes and condominiums increased the number of units sold dramatically. For example, single family homes and condominiums priced between $500,000 and $749,000 increased 32.43% and 28.15% respectively. And the highest priced single family homes and condominiums selling for $1M and up increased the number of units sold by 27.93% and 58.03% respectively. 58.03% is a substantial increase in the number of $1M condominiums sold!
Obviously, everything is relative. We won’t know whether or not these figures will hold and whether or not these numbers are truly Denver’s new normal until after the selling season ends in the fall. But in the meantime, Steve Danylieu, head of the Denver Metro Association of Realtors, says, “the price of housing is on a higher trajectory than wages. The affordability gap in the middle of the market is getting wider. Is this sustainable? Depends on who you ask.
Other data suggests that Denver’s home values and sales numbers are sustainable. Trulia ranks Denver among the top three metro areas with the highest increase in home values at 98.1%. Couple this 98.1% home value increase with the Denver Metro Association of Realtors data on the number of single family and condominium units sold and it just may be that Denver’s new normal will remain at this rocky mountain high!