The Denver real estate market is presenting some favorable opportunities for homeowners and investors. By the end of December 2016, the average home price in the Greater Denver area increased by 6.7 percent for the year. This price growth is modest when compared to the previous two years, and it suggests that prices are stabilizing. Home sales are expected to increase in Denver’s top neighborhoods.
Housing Availability Shrinks While Prices Climb
In December 2015, the median price of single-family home in Denver was $373,094. During the final days of 2016, this average price was $398,179. There are many contributing factors that real estate market analysts have considered when examining this value growth, but nearly every expert has noted that housing inventories are shrinking.
Per the laws of supply and demand, the low quantity of homes for sale will increase prices. The influx of people to Front Range communities during the past year has also driven up the demand for housing.
Consumer Confidence Will Drive Sales
While prices are rising, buyers may decide that 2017 is a good year to purchase home. Slower rates of home value growth suggest that a bubble is not present, and this improves the overall outlook of the economy. Numerous Denver communities can expect higher than average home sales in the coming year.
Top Denver Neighborhoods Should Expect High Growth
The average price growth for homes across the Denver area will be modest in 2017, but some neighborhoods will experience dramatic spikes in home values. Zillow has predicted the home value outlooks of top neighborhoods in Denver real estate markets.
In Aurora, City Center North and Centretech will see home values grow by about 8.8 percent. At a growth rate of 8.6 percent, Denver’s Elyria-Swansea will experience a similar expansion in home values. Globeville should expect a growth rate of about 8 percent. Westwood home values will rise by 7.6 percent.
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