Denver Residential Real Estate Market: January 2017 Update

2017 January 6
by David Schlichter
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This LoHi listing was sold by David Schlichter in 2016 for $737,800.

In 2016, our clients sold homes at record prices, bought homes with historically low interest rates, and/or held on to properties and watched them appreciate significantly.  Below are some highlights of the end of 2016 Denver residential real estate market data and a few predictions for 2017:

2016 DATA

  • Median home prices in the Denver metro area ended the year up 11.3% from last year.
  • The average sale price for detached single family homes in the metro area in December was $424,648, and in Denver County it was $472,537.
  • The average sale price for attached single family homes in the metro area in December was $307,247, and in Denver County it was $380,742.
  • The number of active homes for sale in the metro area was down to 6,715 in December versus 8,189 at the same time last year.  In Denver County, there were 1,449 homes for sale, down from 1,619 last year.
  • 30-year fixed rate mortgages ended the year at an average of 4.32%.

2017 PREDICTIONS

Assuming no major negative or positive surprises that significantly alter the economy or the Denver housing market, our prediction is that 2017 will be another strong year for Denver real estate, marked by the following trends:

  • CONTINUED POPULATION GROWTH: Denver will continue to be a rapidly growing city in 2017, which will increase demand for a limited supply of housing.
  • RISING INTEREST RATES: Interest rates have already risen and are expected to rise in 2017.  As interest rates rise, homes will become less affordable.  The sooner buyers who are currently looking are able to make a purchase, the lower their interest rate will likely be, the more affordable their home will likely be, and the less they will pay in interest over the life of the loan.
  • SLOWING RATE OF PRICE APPRECIATION: Denver has become significantly less affordable in recent years with a rate of price appreciation double that of the national average.  Interest rates are rising, making home purchases even less affordable, and our national political and economic environment is defined by unusual uncertainty given a highly unconventional election.  All three of these factors will put downward pressure on our rate of price appreciation and likely slow it from the unusual double-digit percentage growth to which we have grown accustomed in recent years.

Is 2017 a year in which you think you’ll be selling or buying real estate?  If so, let’s get together this month to start to put the wheels in motion.  Contact us today to schedule an appointment, or please be in touch if someone you know is considering buying or selling a home in 2017.

The Good Life Denver is written by David Schlichter. To stay in the loop, like The Good Life Denver on Facebook and follow @thegoodlifeden on Twitter and @thegoodlifedenver on Instagram!

In addition to writing for The Good Life Denver, David works full-time as a Denver real estate agent with Keller Williams Realty Downtown, LLC. David and his team help clients (ranging from sellers, to buyers, to seasoned investors) achieve their residential real estate goals. Contact David today for all of your Denver real estate needs. Direct: 720-440-2340

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