Colorado’s housing market continues to be ‘hot’. The top ten hottest cities in our nation are: Miami, Phoenix, Chicago, Fort Lauderdale, Houston, Denver, San Antonio, Charlotte, San Diego and Flint. Denver is number 6.
In the Denver-area, the average price of a single-family home rose 3%, averaging around $445,000 per home. Condominium prices rose 4.5% to an average of approximately $298,000. Houses and condos are on the market (listed) an average of 24 days before they are sold. The low supply of housing inventory is creating the high demand. People are moving here in record numbers. Overall, the number of sold homes and condos have risen 9% compared to this time last year.
Analysts see a pattern from last year. The demand is expected to level off late summer and into the fall.
We have continuing low interest rates. These historic low interest rates are keeping buyers active and at the same time - anxious. The shortage of home inventory is making the market reach new pricing highs. On the other hand, many would-be buyers are being squeezed out of the market due to the high prices.
This market is also dividing our city between renters and investors. Rents in Denver, especially for students are out of reach. Many rentals are demanding the renter have a salary three times the amount of rent. If the rent is $1,500 a month, the renter’s salary must be at least $54,000 a year. Tough when you’re going to school. A one-bedroom in Denver can cost $2,000 a month.
There’s a planned complex at Union Station, but a two-bedroom will cost more than $3,500 a month. Denver is listed as having more of a renter’s monthly income paid on rent payments than residents of any other U.S. city with the exception of New York, northern New Jersey, Miami, and three California cities.
There are a lot of condominiums being built in the Denver area, but most are just under 30 units. Thirty units is that magical number that triggers Denver’s mandate on affordable housing.
The housing demand is pushing itself outwards from the city. Buyers and investors are making all cash offers faster than a home can go on the market. They’re also foregoing inspections and offering more money. The buyers are going door-to-door looking for someone to sell - before they can put the house on the market. In Highland, 18% of the homes bought in the last two years were all cash purchases. The average home price in Highland is $515,000, a 55% jump from 2012. LoHi is even a ‘hotter’ area. Two properties last month sold for more than $1 million each - paid for in cash.
If you are looking to purchase a property in Denver or other areas of Colorado, Gantenbein Law Firm's top real estate lawyers can assist, including help with any legal issues regarding HOAs or foreclosure properties. Gantenbein Law Firm's attorneys practice both residential and commercial real estate law, and work effectively and efficiently for the best and most economical outcomes for their clients.
If you are purchasing a commercial property, you may have business issues that Gantenbein Law Firm's business lawyers can expertly assist with, including but not limited to, lease agreements, liability waivers, or employment agreements for your business.
Gantenbein Law Firm also practices Tax Law- including local, state and federal IRS issues, HOA Defense, Foreclosure Defense- including loan modification help and foreclosure help in Colorado, and Estate Planning, Trusts, Wills and Probate Law. For your best options in these areas of law, call to schedule a consult of your case: 303-618-2122 or visit www.gantenbeinlaw.com.