Denver area residents know about the ‘perfect storm.’ There seems to be a ‘perfect’ one every couple of years! Cold air tumbles out of the Rockies and collides with moist, warm air pumped in all the way from the Gulf. The great thing about winter storms along the front range is that, if one waits a couple of days, it may very well be back up in the 60s, or even 70s, again.
There’s a perfect storm gathering in metro Denver real estate. But this is one you’ll like; it’s like getting a couple of feet of powder, but up around Breckenridge and Keystone. Low interest rates are converging with improving consumer confidence and a growing job market. As a result, Denver is now one of the better real estate markets in the nation. One metric for measuring performance is the Case-Shiller price index. Denver prices were up 4% this June over last June. This brought the Denver area in at #4 in the country among major metropolitan areas.
The warm winds of positive change are upon us. Real estate prices are on the rise. Homes in September 2012 sold in an average of 64 days, down from 105 days a year earlier. In the popular Highlands area of Northwest Denver, homes are on the market an average of only 43 days. Beautifully renovated, historic homes in Cherry Creek are popular as well. The number of Denver-area homes sold is up 17 percent year-over-year. Sellers are confident enough about prices to finally put their homes up for sale. Buyers can lock in mortgage rates that are near historic lows.
Sellers are spurred on by housing inventories that were very recently at 13 year lows. Low inventories helped to first stabilize, and then to increase, prices. Buyers are entering the market without reservat ion. They understand that there is virtually no room for interest rates to decline further. Real estate purchased today is unlikely to be worth less a year from now. They understand that rebounding real estate prices have little reason to fall back again. The long-term appreciation in residential Denver real estate values is expected to average a steady three or four percent per year on average. Major corporations like Comcast continue to announce relocations of headquarters to metro Denver. Denver’s at the crossroads of Western commerce, energy, and travel. It is well-positioned to lead the way in economic growth.
Contact us for further insight into the latest opportunities in Denver area real estate.