The housing market doesn’t show any signs of cooling in the Mile High City as, to the dismay of many buyers, we set two records last month: record-high home prices and record low average days on
Zillow Says Denver Homes Wont Appreciate As Fast As The Rest Of US
According to a recent report from Zillow, Denver homes won't appreciate as much as the national average over the next year. Zillow estimates that nationally, homes will appreciate 3.1 percent over the next 12 months, but only 2.9 percent in Denver.
Though it’s a seemingly small difference, that 2.9 percent is still going to be a hard pill to swallow when it comes to paying a 20 percent down payment on a new home. Currently, Zillow estimates the median home value in Denver is at $372,800. A 20 percent down payment on that price tag would cost a home buyer $74,560.
In 2018, Denver homes are estimated to have a median value of $383,667. A 20 percent down payment on that price would cost a home buyer $76,733, which is $2,173 more than this year.
What does that mean for potential buyers? According to Zillow, more saving. By the numbers above, potential home buyers will have to put away an additional $181 a month just to keep up with home value appreciation, not to mention whatever else is needed for the down payment itself.
Some people may opt to offer less than 20 percent down on their home purchase, but according to Zillow, buying now with a low down payment can be riskier, and the offer may not be considered as competitive by the seller.
While rising home prices in Denver can seem discouraging, there are still good deals to be found – you just have to know where to look. If you’re in the market for a new home, contact Metrowest today – we’d love to help you start the process.
DAVE NELSON, 4-time 5280 Magazine 5 Star Real Estate Professional. Dave’s career in real estate has chronicled more than 15 years. Known as a true real estate professional, Dave is experienced i....