As we head into 2018, we believe that housing prices are going to be strong again this year. Prices have jumped 20% in the past two years, which is amazing growth! Last year the median home price in Harvard Gulch/Rosedale increased to $516,250 an increase of 9.1% over 2016.
At the end of 2015 we saw prices start to plateau and drop a bit and expected 2017 to be a slower year, but it was not! Nearby Platt Park saw an increase in median home price of 14.6% and the University neighborhood saw a huge jump of 19% in median home values in 2017. Increased values of these next door neighbors, will continue to put pressure on the home prices in Rosedale/Harvard Gulch and should push prices up again in 2018.
Rosedale/Harvard Gulch Stats for 2017: In 2017 our neighborhood saw an increase in the median home value of 9.1%. The price per square foot was $278 per square foot which is a 6.1% increase over 2016. 64 homes sold in Harvard Gulch last year and the 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 new residents moved to Colorado with an expected 90,000 predicted to move to Colorado in 2018. Colorado ranks sixth in the nation for people moving to our state. Denver's strong economy and low unemployment rate (2.9%) means that most of our residents are working and have purchasing power. This is good news for the housing market.
Last year much of the new home starts were concentrated on the higher tier of our market and on condominiums. Condo starts were at 36% last year as builders are trying to respond to the need for homes under $400,000. Zillow is predicting that higher end homes may slow in price increase and come closer to the national average of 5% in 2018. However, we have not seen any tangible signs of the Denver market slowing down.
The Unknown Factors: 1. Amazon: If Amazon chooses Denver as its location for HQ2 (Second Headquarters) we anticipate another jump in prices as the economists are predicting an Amazon landing would create around 50,000 new jobs, many of those with high salaries. 2. The new tax law: After studying the available information, the majority of Denver homeowners will not be adversely effected, although the luxury market will feel some impact from the caps on deductions. 3. Interest Rates: The Fed has three scheduled tax rates in store for 2018, but we do not know how high or if they will increase rates. Right now we are anticipating the interest rates to inch up to 4.5%, which will impact loans and buying power for some buyers.
Conclusion: "Nothing substantial has changed in economic and housing conditions", Steve Danyliw, Trends Chairman of the Denver Metro Realtor's Association. Because of this stability, we expect 2018 to be another great year to sell your home. We specialize in the Classic Denver Neighborhoods and would love to help you buy or sell in 2018. Please feel free to contact us with any questions or for a free Market Analysis! You can visit us at www.baityrealty.com