Home inventory in Denver experienced a slight increase of 4.15% in July
Home inventory in Denver experienced a slight increase of 4.15% in July from the previous month according to the latest report from Denver Metro Association of Realtors. Even with this increase, 2017 still represents a new record-low July with 7,352 listings (single family and condos). The number of sales dropped 19.66% from June, which is significantly higher than the normal seasonal decrease of 5%. Under contracts also experienced a higher than usual decrease from June of 14.78%; a decrease of 6.2% is considered more normal.
Average home prices in metro Denver increased 9.5% year-over-year in July to $449,054, which includes both detached single family homes and attached condos and townhomes. Average home price for a single family home reached $496,382, an increase 8.3%, while condo prices averaged $342,187 in July, up 13.6% from the year before. Condo inventory continues to outperform single family homes, up 11.42% year-over-year, while single family home inventory was down 4.76%. The condo market showed 18.08% fewer sales than the previous month, while the average and median sales prices dropped to $324,187 and $275,000, respectively.
Sales of multi-million dollar homes in Denver area isn’t slowing down with 259 sales of residential properties priced $1 million and higher in June; a 15% increase from 225 sales during the same month in 2016 and an 11% increase from 232 sales in May.
RiNo the trendy Denver district expects office space to double in 5 years. RiNo’s office space is up 85% since 2008, according to the latest report from CBRE. Currently, RiNo has 785,873 square feet of office space, compared to 425,458 square feet a decade ago. Another 800,000 square feet are currently under construction or in the planning stages with completion anticipated within the next five years. That would bring the total to 1.58 million square feet of office space in RiNo. Downtown Denver has 27 million square feet of office space, and the Denver Tech Center has 34 million square feet. This represents tremendous growth for an area that was mainly industrial buildings and empty lots 15 years ago.
How much have Denver’s rents gone up since 2005? Well between 2005 and 2015, Denver rents have increased 52%, more than nearly any other large U.S. city. According to a study by ApartmentList, Denver added 2.9 new jobs for every new housing unit permitted from 2005 to 2015.
Cherry Creek North district is in a major construction boom with eight large projects under way. Over the next 24-32 months, developers will add 236 residential units and 370 hotel rooms to the district. At the end of this growth spurt, the district will have 541 residential units, 755 hotel rooms, 900,000 square feet of office, and 1.3 million square feet of retail space.