In a bit of good news for area home buyers, the median home price in metro Denver remained unchanged in June, which may be a signal that the real estate market in the Mile High City is hitting its
Denver Home Prices On The Rise But Inventory Decreases
According to Zillow, one of the leading online real estate inventory databases, the number of homes for sale dropped in metro Denver for the fifth consecutive month in April, falling 17.5 percent from April 2013. We’re just one of 21 metro markets across the nation where inventories dropped, according to Zillow.
Coupled with a declining inventory are rising home prices. According to Zillow spokespersons, home values rose 7.4 percent over the same period, compared with a national increase of 5.3 percent.
While the inventory numbers continue to dwindle, Zillow's Home Value Forecast shows prices rising another one percent in the next 12 months, which is also good news for sellers.
The Zillow Home Value Index, which is essentially the midpoint of estimated home values for a particular area, for metro Denver was and impressive $248,000 in April, compared with $170,200 nationally.
Home values were $257,900 in Denver; $175,000 in Aurora; $249,600 in Lakewood; $213,000 in Thornton; and $220,000 in Westminster.
Zillow chief economist Stan Humphries said in a statement that first-time homebuyers are ready to buy, but they can't because of the lack of homes for sale in their price range. "This shortage of inventory is driven by a couple of factors, most notably by stubbornly high negative equity, particularly at the lower end of the market," he said.
Another effect of the inventory shortage includes rents on the rise. Rents skyrocketed in the Denver area during the year, posting a 6.8 percent increase to $1,673 while national rents increased 2.3 percent in the 12-month period to $1,311.
Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 23 years of experience in collections, foreclosure/bankruptcy, los....