As we head into 2018, we believe that housing prices are going to be strong again this year. Prices have jumped almost 30 % in our neighborhood in the past two years, which is amazing growth! Last year the median home price in the DU University neighborhood increased to $552,000 an increase of 15.5% over 2016.
At the end of 2015 we saw prices start to plateau and drop a bit and we expected 2017 to be a slower year, but it was not. Nearby Platt Park saw an increase in price of 14.6% and the Harvard Gulch/Rosedale neighborhood saw a jump of 9% in home values in 2017. Increased value in nearby neighborhoods will continue to put positive pressure on the DU University neighborhood and should continue to push prices up in 2018.
University stats: In 2017 we saw an increase of median home values of 15.5%. The price per square foot in 2017 was $282 per square foot which was a 9.3% increase over 2016. 86 homes sold in University last year and average days on market remained low at an average of 7 days!
Good News for Sellers. Denver and Colorado continue to add population at a strong pace. Last year 77,000 people moved to Colorado with an expected 90,000 predicted to be added this year. Colorado ranks sixth in the nation for people moving to our state. Denver’s strong economy and low unemployment rate (2.7%)means that most Colorado residents are working and have purchasing power. This is good news for the housing market.
Last year much of the new build work was concentrated on the higher tier of the market and on condominiums. Condo starts were at 36% last year as builders are trying to create homes under $400,000. Zillow predicts that higher end homes may slow to closer to the national average of 5% in 2018 but we are not yet seeing signs of the Denver market slowing.
The Unknown Factors: 1. We are all eagerly awaiting to hear if Amazon chooses Denver as its location for their second headquarter campus. If that happens, we anticipate home prices to jump as an approximate 50,000 high paying jobs would be created.2. The new tax law: After studying the available information, the majority of homeowners in Denver will not be negatively affected by the new law, although it probably will impact the luxury market. 3. Interest Rates are predicted to inch up this year to around 4.5%. This uptick in rates will limit some buyers in how much they can afford to pay for a home.
Conclusion: To quote Steve Danyliw the Trends Chariman for DMAR, “Nothing substantial has changed in economic and housing conditions. Because of this we expect 2018 to be another great year to sell your home. We specialize in the classic Denver neighborhoods: we live here and work here. Please call us if you would like a free estimate on what your home is worth or if you are looking to buy or sell. We would love to help you! You can also visit us online at: www.baityrealty.com