It doesn’t matter if you are buying or selling – having a keen understanding of Denver home prices is going to give you an advantage in what is a very hot, competitive real estate market at the moment.
Buyers will benefit from knowing what prices are like because it can allow them to set realistic targets. If you know that you’re looking for a home in the $400,000 to $450,000 range, you can save time and grief by knowing exactly how much house that will get you in different parts of Denver.
If you are thinking about selling your home, you want to know if your home valuation is similar to other houses in Denver so that you can make sure that now really is a good time to sell. It’s also worth thinking of it from a buyer’s perspective, because unless you are moving away or looking to rent, you are probably planning on buying new a home too.
It may have been a while since you took a statistical math class, so before we jump into home prices, let’s refresh our knowledge of averages. Average home prices are typically listed in one of two ways: mean or median.
The mean is what we usually think of as an “average”. It’s calculated by adding all of the home prices together, and dividing that total by the number of houses.
The median is the halfway point. That is, 50% of the homes listed are above the median price and 50% are below it.
All of the home values we’ll use in this post are medians. This is because mean values can easily be skewed by “outliers”, or extremely high or low numbers. For example, a single home that costs $850,000 in a neighborhood where most homes are $300,000 could significantly throw off the mean value, but won’t really affect the median much.
According to Zillow, the median listing price for homes in Denver is $485,000. However, the median selling price of $406,100 suggests that homes are generally selling for significantly less than the listing price. This stat can be very misleading however. From experience we can tell you that the list to sale price varies widely depending on price point and area. In general, homes at a lower price point are selling at or above list price. But, homes in higher price ranges are starting to see more price reductions and longer time on market. We believe this is a direct result of people hearing how hot the Denver market is based on lower price points and overpricing their home.
This pricing also directly effects time on market.
According to a recent 9NEWS article you can see a dramatic shift in time on market at the 400k price point.
Price obviously varies according to the size and type of home, so that $485,000 price tag might not mean much to you because it is an amalgamation of every home listed for sale in the city. Here are a few Zillow medians that drill down a bit further:
The numbers vary widely by neighborhood as well. Cherry Creek homes are by far the most expensive, with the median list price settling at just over one million dollars. The most affordable homes can be found in Windsor, where averages are as low as $230,000.
As a whole, Denver home prices have been on an upward trend for the past seven years or so. Since 2013, prices have increased by just over 72%. Here’s a quick snapshot of median prices from the past to present:
January 2011 … $200,000
January 2013 … $275,000
January 2015 … $414,000
January 2017 … $450,000
January 2018 … $475,000
So what does it all mean?
It’s not easy to say. Remember that these numbers are just the average home prices in Denver. There are plenty of houses that sell for more and plenty that sell for less. What matters most is finding the right house for you at a price you can afford.
You can use these numbers to give you a rough idea of whether or not today is a good time to buy or sell for you, but really you’ll want to talk to a Denver real estate agent to get the whole story.
If you think you’re ready to put the numbers together, Walden Novak would love to be the ones to help you do it. Get in touch today to learn more about Denver home prices and how they might affect your decision to buy or sell a home.