We had our first team meeting of the year today and we were talking about how much Denver area values have gone up in the past couple of years and especially last year. I just checked our MLS data (which should be the most reliable). It has stats published through the end of November and shows that at that point the average sold price was $401,500, up 11% from the same time 12 months earlier ($361,318 Nov. 2014). I am assuming that 11% or maybe even a little higher will be the final number for 2015. It's almost inconceivable to me that we've moved from what was an average sold price of about $250,000 a few short years ago to where we are now.
We also talked today about how difficult it is for ALL of today's buyers who want to live in the Denver area. The difficulty is not confined to just first -time buyers. Case in Point: We talked about a client of ours that bought a house a couple of years ago for $400,000 who now needs more room as their family is growing. Their house is now worth about 20-25% more, or about $490,000. In order to make any appreciable difference in their living space and not make a lateral move they'll need to look at homes in at least the $600-$700 range. Although they'll have a decent amount from their sale to put down, they are still going to be looking at a significant increase in payments. We believe the aforementioned scenario is a major contributing factor to why the inventory levels remain low. Many people would like to move but can't justify it or afford it. I mentioned to the team that this has been going on for many years in other metropolitan areas such as LA, San Francisco, New York, etc. and people still managed to buy and sell. I guess this is our new norm and we're all going to have to get used it and figure out how to make it work. Experts are predicting about a 4% appreciation rate for the Denver area in '16. If that holds true, the average sold price will be $417,560 next year at this time. Yes, the prices are high but they're only going higher and interest rates will probably go up as well, adding insult to injury, so I guess the best time to buy is now.
With all of the above said, it's important now more than ever for you to keep up on what values are doing in your neighborhood or in a neighborhood you'd like to live in. I encourage you to take advantage of some of the tools that we use and make available complimentary to our past and prospective clients. We actually have several programs that we use regularly, but I'd recommend one in particular to you. It's a product that we pay for from the National Association of Realtors which pulls data directly from our MLS. Unlike some of the well-known third party programs that you are already familiar with like Zillow, Trulia, etc. this one is perfectly accurate, reliable and unfiltered. The mapping displays are also very eye-pleasing and easy to navigate. The program is called "Market Snapshot." It will also update you automatically via email at intervals you choose. Our clients that are using it give it rave reviews, so take advantage of this freebie and get set up by going to:
http://www.homeinsight.com/Widget/default.asp?O08EY32CQRVI.
We also have a great search tool and home valuation tool available on our website http://5280living.com
If you want a very accurate and free home valuation which is as about as close to a professional appraisal as you can get, call or email me. I've done hundreds over the years; Many for banks. In most cases my valuations turn out to be more accurate that the professional appraisers' because I have a better feel for the market than many of them do. They are not in the trenches! My estimate of value cannot be used for financing purposes like the $400+ appraiser's version but it will give you a very good sense of what your home is really worth.They take me about 2 hours to put together and I'm happy to do it for you!
If a move is in your plans for 2016 I hope you'll contact us. You can be assured that we'll make your experience a great one!! Jeff. 720-937-5333 jeff@5280living.com
