Colorado is known for its world-class skiing, picturesque scenery, hiking, rafting and other unique experiences that set it apart from the rest of the country. Recently, one of its most well-known cities, Denver, became recognized for another reason: the third "hottest housing market" in the United States.
Zillow, a prominent online real estate database, recently reported its rankings for the top 10 hottest housing markets in the United States this year. Denver received the number three spot behind San Jose, California, and Orlando, Florida.
Zillow based its rankings on five factors. These factors included:
- High-paying jobs
- Steadily increasing population
- High home values and appreciation rates
- High rent prices
- Low unemployment rates
According to a recent news story, it was the second time that San Jose--known for its low unemployment and high-priced houses--was ranked number one. Zillow also suggested affordability for millennials is a factor in some of the nation's hottest housing markets, such as Orlando. Denver was followed by Atlanta, Minneapolis, San Francisco, Dallas, Nashville, Jacksonville and San Diego.
Last year was the second record selling year for the Denver housing market. According to the Denver Business Journal, the average price for a home in Denver is around $450,000. Additionally, the Denver Metro Association of Realtors (DMAR) reported Denver's luxury market is one of the strongest in the nation. According to the DMAR, "[Denver] remains a seller's market for properties priced over $1 million. To be in the central city--Denver's premier neighborhoods--people know they still have to pay a premium."
Additionally, a neighboring city outside of Denver, Colorado Springs, might become another hot housing market this year. Based on high employment rates, affordability and home appreciation values, it is becoming a popular destination, under 100 miles outside of Denver.
Real estate transactions can be complex, especially for out-of-state buyers. If you are considering buying a home in Colorado, it can be beneficial to consult with an experienced Colorado real estate attorney who can help guide you throughout the transaction process.