HOUSINGNEWS REPORT
STATE SPOTLIGHT
Pricing Problematic for Young and Old The demand-supply imbalance has boosted home prices, raising them out of reach for many first-time homebuyers, according to Ian Armstrong, broker/ owner at Armstrong Real Estate Services in Denver. “The average price for a home has shot up so much that the average price of a home is hard to afford, and those that do come on (the market at an affordable
“From a (sales) volume stand point it appears we may have peaked in 2015,” wrote Greg Smith, broker/owner at RE/MAX Alliance in Boulder, in an email. “As a result of limited inventory we are currently in a holding pattern …. In comparison to previous booms the limited new construction, low unemployment, and continued influx of people moving to Colorado, we are expecting more of an easing in the market as opposed to a large adjustment.”
price) get 10 offers,” said Armstrong, who said anything below $350,000 is selling fast while sales of homes priced above that are starting to slow. “I’m seeing a lot of first-time homebuyers; it’s just that I’m having a hard time finding something in their budget. They have to move further out away from the city.” The highly competitive market in the lower price ranges is also proving problematic for older homeowners looking to downsize, according to Steffen Kaufman, broker associate at RE/MAX Professionals in Englewood. “I have so many older clients who would move in a heartbeat if they could find what they are looking for, but they can’t,” he said, explaining that most of these downsizing clients are selling a bigger home priced around $700,000 and looking to purchase a smaller, ranch- style home in the $300,000 to $400,000 range. “I wish I could find product. I could probably make quite a few commissions. I have clients who have been looking for over a year who just can’t find what they are looking for.” Peak Prices, Poor Affordability Median home prices in the 10-county Denver metropolitan statistical area hit an all-time high of $345,000 in June 2016, according to ATTOM Data Solutions. That was a whopping 49 percent above the city’s pre-recession high of $231,000 in June 2006. Median home prices in July pulled back 1 percent from the all-time high, but were still up 14 percent from a
I’m seeing a lot of first-time homebuyers; it’s just that I’m having a hard time finding something in their budget. They have to move further out away from the city. Ian Armstrong | Broker/Owner, Armstrong Real Estate Services, Denver, CO
DENVER COUNTY AFFORDABILITY & SALES PRICE YoY Pct Change in Home Sales YoY Pct Change in Home Prices Affordability Index*
ATTOM Data Solutions • P11
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