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Metro Denver residential properties are increasing in value

On Behalf of | Nov 8, 2017 | Real Estate Transactions |

Home prices in the metro Denver area have been increasing in value. According to the Denver Metro Association of Realtors (DMAR), the month of October proved profitable for residential properties in Denver, both for condos and single-family detached homes. The average price for these was $380,000 in October.

Octobers’s rise represents a $5,000 average increase in home value, representing a return to August numbers after a dip during September. By looking at the fluctuations back to August, then, you might consider home values to be fairly stable for the moment — which is a good thing. Looking back to last year, however, we do see an 8.88 percent overall rise in residential property values.

Why the uptick in home values in October?

One reason for the uptick in prices during October, analysts believe, is the result of low inventory. According to the Chairman of the Market Trends Committee for DMAR, “The inventory number was a little scary in October and it was not what we were hoping to see.” Homebuyer demand is strong at this time, but inventories are low. Even still, homes are spending longer on the market before they’re selling. Last June, the average was 27 days, and in October, the average was 38 days.

The luxury home market in Denver is particularly strong. A total of 158 homes valued at more than $1 million sold in October. This represented a 32.77 percent increase compared to September. Luxury homes are selling at a 50 percent higher rate than this time last year. This is promising news for any investors who own property in the luxury market. Highest selling homes in the metro Denver area in October were single-family, four-bedroom, and six-bathroom residences in the city.

Do you want to take advantage of the great real estate market conditions?

Denver residents who study the real estate market closely and those who understand real estate law in its intricacies stand a better chance of profiting from investing in the residential real estate market. Fortunately, there is plenty of information on residential real estate sales that can be found throughout the internet.