Denver Continues to See Property Values Rising Along with Sales
In the past 12 months housing prices here in the Denver area have begun to see a major turnaround. In the second quarter of 2013 average Denver housing prices have increased by 9 percent over the same time period last year. This according to the latest reports issued by the Colorado Association of Realtors just released.
Double the Current US Rates
This current trend in rising home prices in the Denver area is running approximately twice that of average rate in the rest of the country, spurred on perhaps by rising sales. However, it may see a slowdown over the coming months as the market begins to stabilize. In another report issued by Zillow, average US home prices climbed by 5.8 percent over this same time frame last year, reaching a median price of $161,000.
According to the report issued by Zillow, the median home price in the metro Denver area shot up by 12.1 percent to reach $240,000. But the news for sellers in the Aurora and Englewood areas gets even better as median prices shot up by 16.7 and 15.7 percent respectively. Even in Denver proper an increase of 11.7 percent has been seen.
A Slow Start
Sales throughout the US started off slowly, but during the second quarter both the Denver area, and the rest of the US have seen a major increase in sales. In fact the second quarter has seen the market rebound become stronger than it has been since 2004. While this might seem to be a good thing at the moment, especially for motivated sellers, it could be that the market is trying to correct itself.
Bear in mind that the average annual price growth is typically no more than 2 to 3 percent. Some analysts fear we may be headed towards another housing bubble. Experts believe that this is not likely to be the case for a number of reasons. What they do see however, is that prices and sales will begin to stabilize in the coming months.
No Runaway Prices
The current trend towards higher home prices in the Denver market is creating a situation where more sellers who were holding on to their homes are now putting them on the market. Investors who over the past few years have been quick to buy properties are starting to pull back as they see their potential for high returns begin to dwindle.
At the same time, the last two months have seen mortgage interest rates spiking after a long period dwelling in the doldrums. While these low rates and low prices might have been good for many buyers, it has in fact kept the markets here in Denver relatively stagnant. The increase in mortgage rates is forcing potential buyers to rethink how much they can honestly afford to spend.
Denver real estate experts believe that all of this will combine to help regulate housing prices here in the Denver area. This is in fact good news for those who are both looking to sell and to buy. A more stable market without runaway prices is just what the area needs as income levels in the area have remained relatively stagnant over the past year. Price increases are expected to slow to a more moderate and affordable rate of 3.3 percent in the coming months, with sales continuing to increase steadily. The coming months are expected to continue being a good time to invest in Denver homes.
FOR MORE INFORMATION CALL LAURIE STOESSEL 303-378-2320