While the entire state of Colorado is above the norm in terms of a full estate recovery, there is one city that has outshined the others. That city is Denver. Being the largest and most well-known city in Colorado, it is easy to see why there could be more demand in the area.
Currently, home values in Denver are nearly $90,000 above the national average, and rising. This is a huge indicator that the real estate market in Denver is healthy. Also, the number of single family sales was up in 2012 versus 2011 by a significant margin. The average price was also up by a large amount. This shows that demand grew substantially in the Denver market.
There are other positive signs for Denver. Overall inventory is down, which means there are less vacant homes. That is good for buyers, sellers and the local government (more occupied homes equals higher tax revenues). Also, the amount of days properties are on the market are less. Faster sales mean less time paying real estate agents and marketing fees for sellers.
2013 should be a positive year for most within the real estate market. There is data that shows that this is a sellers’ market, with homes under the price of $400,000 in high demand and buyers placed in bidding wars. In many cases, home sellers are receiving bids in excess of the asking price within days of putting the house on the market. This is a tremendous sign for the market at this level.
Expensive homes are still showing positive signs, but the amount of growth in this segment is a bit less. This is not too concerning because not everyone can afford expensive real estate, especially as the price goes further up. Look for small improvements for luxury real estate in 2013, with larger appreciation on the years to come.
Another indicator of the real estate market is the unemployment rate. With more residents working, there is more income to be spent on homes, and less on rent units. The unemployment rate in Denver is around 7.4%, which is less than the national average. While this is not yet at the level the city wants, it is showing signs of life and is ahead of the curve compared to the national landscape.
The city of Denver is doing well in the real estate market. It has had solid growth in all major areas for the past three years, and looks to continue this trend through 2013.
Kamiel Moore writes for We Buy Ugly Houses Colorado, a site about Colorado real estate.