Thursday, January 25, 2018
What Amazon’s HQ2 means for homeowners, home buyers and renters in the chosen city
more considerations for the local Denver Real Estate Market relating to Amazon HQ2....from marketwatch.com
Having Amazon as a neighbor will result in very different consequences for homeowners and renters.
On Thursday, Amazon released its short-list of 20 cities still in the running for HQ2, its second major headquarters in the U.S.: Atlanta; Austin; Boston; Chicago; Columbus; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Md.; Nashville; Newark, N.J.; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, NC; Toronto; and Washington, D.C.
Amazon announced in September that it would accept competing proposals from cities across the country as it decides the location of a second headquarters. The tech and retail giant set certain limitations for where it would consider: Only metro areas with at least 1 million people are eligible, and they must have an international airport with nonstop flights to Seattle.
Bids for HQ2, as it has been dubbed, were due in October, and cities ranging from Houston to Baltimore threw their hats in the ring.
Wherever Amazon AMZN, +1.51% decides to put its second home, housing prices will likely skyrocket. Since Amazon solidified its presence in Seattle’s South Union neighborhood seven years ago, home prices in the city have jumped by 83% and rents by 47%, according to online real estate marketplace Zillow.
And because HQ2 is likely to lure other companies — from established competitors to burgeoning startups — Amazonians won’t be the only people in search of new housing. How the chosen city’s housing market reacts will depend on how flexible it is, said Danielle Hale, chief economist at Realtor.com.
Arguably, cities like Indianapolis or Dallas could more easily absorb the added demand a company like Amazon would bring because they have room to expand their suburbs, as compared with somewhere like New York City. “Some of the housing markets that are already very well developed into their suburbs would have difficulty responding to a major employer coming in,” Hale said. (Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
How much Amazon’s choice will affect consumers’ housing-related expenses in the selected city will depend largely on whether they are renters or homeowners.
Here’s how it will affect people who live in the winning city:
Renters will face the most difficulty in keeping their housing affordable
Even model tenants who pay their rent on time and keep their unit in pristine condition are more exposed to rent hikes when a city suddenly becomes popular and landlords see a chance to make money. “There are few options for renters to maintain their housing costs if they live in a property where the owner has the legal right to increase rent,” said Douglas Robinson, a spokesman for NeighborWorks America, a nonprofit organization that supports community development.
For some renters, the best option they may have is to stay put and avoid broker fees (something the tenant or landlord would likely have to pay) and other costs associated with moving.
Beyond negotiating a lower price, renters can also explore a longer lease. Many renters won’t have much trouble in seeking an 18-month rental agreement. Asking for a lease that’s longer could still be feasible if the tenant and owner can agree on established annual rent increases, said Gary Malin, president of New York-based real estate agency Citi Habitats. But renters also run the risk of setting a rent hike that’s actually larger than what the landlord may have actually considered when it came time to renew.
Also see: Amazon spells out its ‘City Maker’ role in reshaping Seattle as it seeks a second headquarters site
When Amazon makes the announcement, it could be the time to buy
Amazon’s pending arrival should also make renters consider homeownership, Robinson suggested. “Prices are increasing in many markets, but mortgage rates remain low and lenders do offer a range of low down payment products,” Robinson said, adding that people who haven’t saved enough for a down payment “should look for down payment assistance grants or forgivable loans.”
Amazon has said it plans build its new headquarters in phases, with the $5 billion investment being spread out over a period of 15 to 17 years, The Wall Street Journal reported. By 2019, the company hopes to have between 500,000 square feet and 1 million square feet of office space ready.
Homeowners will be the biggest winners — for the most part
Homeowners will be able to tap into their growing home equity and could have attractive refinance options at their disposal. “It’s a pretty unambiguous win,” Hale said.
But that doesn’t mean their costs won’t go up, too. Property taxes are adjusted periodically based on the assessed value of a home.
While higher property taxes alone likely won’t force a homeowner out of their home, it can be difficult to grapple with if other costs of living such as food or gasoline also increase. Some have argued that rising property taxes in part are what have driven homeowners to move away from places like the San Francisco Bay Area or Nashville, though others have said property taxes likely don’t have such an outsized effect.
Either way, homeowners will need to account for these higher costs. But they aren’t without options. For instance, a homeowner could rent out their property through a site like Airbnb to cover these added expenses. “Older homeowners in particular may have an option in some markets to have their tax bills reduced upon request to the appropriate authority,” Robinson said.
Read more: Here are the cities that meet the criteria for Amazon’s second headquarters
Renters and homeowners should get political
One of the main driving forces for rising real estate costs across the country is the lack of new construction. In Seattle, the city’s government has been unable to keep up with developers’ demand for new housing permits. And zoning laws in cities like San Jose, Calif., have caused home prices to skyrocket — a situation that could be exacerbated if Amazon moved in, said Sydney Bennet, a research associate at real estate website Apartment List.
For renters, looser zoning laws could spur the development of additional rental properties — these newer properties would fetch a higher rent than existing units, which could keep costs lower for those in older rentals.
Meanwhile, those looking to buy a home in many of the country’s hottest housing markets (including Seattle) have come up against a low supply of properties, especially starter homes. Making permits more easily accessible could help the winning city’s housing market to meet the growing demand it would face when Amazon comes in. Plus, the influx of new people and businesses to whatever city Amazon selects would likely mitigate any losses in home values homeowners might face due to there being more new homes on the market.
Consequently, homeowners and renters alike may want to consider petitioning local government officials to examine real estate zoning laws so that they are flexible enough to handle the added demand Amazon could bring. “We’re seeing the yes-in-my-backyard movement emerge,” Bennet said. “Who you elect to city council in your city or even in the surrounding suburbs have a lot to say in permitting.”
Having Amazon as a neighbor will result in very different consequences for homeowners and renters.
On Thursday, Amazon released its short-list of 20 cities still in the running for HQ2, its second major headquarters in the U.S.: Atlanta; Austin; Boston; Chicago; Columbus; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Md.; Nashville; Newark, N.J.; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, NC; Toronto; and Washington, D.C.
Amazon announced in September that it would accept competing proposals from cities across the country as it decides the location of a second headquarters. The tech and retail giant set certain limitations for where it would consider: Only metro areas with at least 1 million people are eligible, and they must have an international airport with nonstop flights to Seattle.
Bids for HQ2, as it has been dubbed, were due in October, and cities ranging from Houston to Baltimore threw their hats in the ring.
Wherever Amazon AMZN, +1.51% decides to put its second home, housing prices will likely skyrocket. Since Amazon solidified its presence in Seattle’s South Union neighborhood seven years ago, home prices in the city have jumped by 83% and rents by 47%, according to online real estate marketplace Zillow.
And because HQ2 is likely to lure other companies — from established competitors to burgeoning startups — Amazonians won’t be the only people in search of new housing. How the chosen city’s housing market reacts will depend on how flexible it is, said Danielle Hale, chief economist at Realtor.com.
Arguably, cities like Indianapolis or Dallas could more easily absorb the added demand a company like Amazon would bring because they have room to expand their suburbs, as compared with somewhere like New York City. “Some of the housing markets that are already very well developed into their suburbs would have difficulty responding to a major employer coming in,” Hale said. (Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
How much Amazon’s choice will affect consumers’ housing-related expenses in the selected city will depend largely on whether they are renters or homeowners.
Here’s how it will affect people who live in the winning city:
Renters will face the most difficulty in keeping their housing affordable
Even model tenants who pay their rent on time and keep their unit in pristine condition are more exposed to rent hikes when a city suddenly becomes popular and landlords see a chance to make money. “There are few options for renters to maintain their housing costs if they live in a property where the owner has the legal right to increase rent,” said Douglas Robinson, a spokesman for NeighborWorks America, a nonprofit organization that supports community development.
For some renters, the best option they may have is to stay put and avoid broker fees (something the tenant or landlord would likely have to pay) and other costs associated with moving.
Beyond negotiating a lower price, renters can also explore a longer lease. Many renters won’t have much trouble in seeking an 18-month rental agreement. Asking for a lease that’s longer could still be feasible if the tenant and owner can agree on established annual rent increases, said Gary Malin, president of New York-based real estate agency Citi Habitats. But renters also run the risk of setting a rent hike that’s actually larger than what the landlord may have actually considered when it came time to renew.
Also see: Amazon spells out its ‘City Maker’ role in reshaping Seattle as it seeks a second headquarters site
When Amazon makes the announcement, it could be the time to buy
Amazon’s pending arrival should also make renters consider homeownership, Robinson suggested. “Prices are increasing in many markets, but mortgage rates remain low and lenders do offer a range of low down payment products,” Robinson said, adding that people who haven’t saved enough for a down payment “should look for down payment assistance grants or forgivable loans.”
Amazon has said it plans build its new headquarters in phases, with the $5 billion investment being spread out over a period of 15 to 17 years, The Wall Street Journal reported. By 2019, the company hopes to have between 500,000 square feet and 1 million square feet of office space ready.
Homeowners will be the biggest winners — for the most part
Homeowners will be able to tap into their growing home equity and could have attractive refinance options at their disposal. “It’s a pretty unambiguous win,” Hale said.
But that doesn’t mean their costs won’t go up, too. Property taxes are adjusted periodically based on the assessed value of a home.
While higher property taxes alone likely won’t force a homeowner out of their home, it can be difficult to grapple with if other costs of living such as food or gasoline also increase. Some have argued that rising property taxes in part are what have driven homeowners to move away from places like the San Francisco Bay Area or Nashville, though others have said property taxes likely don’t have such an outsized effect.
Either way, homeowners will need to account for these higher costs. But they aren’t without options. For instance, a homeowner could rent out their property through a site like Airbnb to cover these added expenses. “Older homeowners in particular may have an option in some markets to have their tax bills reduced upon request to the appropriate authority,” Robinson said.
Read more: Here are the cities that meet the criteria for Amazon’s second headquarters
Renters and homeowners should get political
One of the main driving forces for rising real estate costs across the country is the lack of new construction. In Seattle, the city’s government has been unable to keep up with developers’ demand for new housing permits. And zoning laws in cities like San Jose, Calif., have caused home prices to skyrocket — a situation that could be exacerbated if Amazon moved in, said Sydney Bennet, a research associate at real estate website Apartment List.
For renters, looser zoning laws could spur the development of additional rental properties — these newer properties would fetch a higher rent than existing units, which could keep costs lower for those in older rentals.
Meanwhile, those looking to buy a home in many of the country’s hottest housing markets (including Seattle) have come up against a low supply of properties, especially starter homes. Making permits more easily accessible could help the winning city’s housing market to meet the growing demand it would face when Amazon comes in. Plus, the influx of new people and businesses to whatever city Amazon selects would likely mitigate any losses in home values homeowners might face due to there being more new homes on the market.
Consequently, homeowners and renters alike may want to consider petitioning local government officials to examine real estate zoning laws so that they are flexible enough to handle the added demand Amazon could bring. “We’re seeing the yes-in-my-backyard movement emerge,” Bennet said. “Who you elect to city council in your city or even in the surrounding suburbs have a lot to say in permitting.”
Amazon’s HQ2 would have the biggest impact on real estate in these U.S. cities
from marketwatch.com all good things to consider...
Amazon has narrowed the contenders for its new headquarters down to 20 cities — but the property markets in some cities could do with a boost more than others.
From a field of 238 entries, Amazon has winnowed the competition to 20 finalists: Atlanta; Austin; Boston; Chicago; Columbus; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Md.; Nashville; Newark, N.J.; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, NC; Toronto; and Washington, D.C.
The cities generally share a lot in common. Most are near international airports. Nine of the candidates are among the top 10 metropolitan areas by population in the U.S., with Houston being the only one of those major cities not to make the cut. Toronto, meanwhile, is Canada’s largest city.
Home
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Amazon’s HQ2 would have the biggest impact on real estate in these U.S. cities
Published: Jan 21, 2018 1:59 p.m. ET
10
Some of the 20 short-listed cities may be less equipped to handle the influx of new residents
Amazon has narrowed the contenders for its new headquarters down to 20 cities — but the property markets in some cities could do with a boost more than others.
From a field of 238 entries, Amazon has winnowed the competition to 20 finalists: Atlanta; Austin; Boston; Chicago; Columbus; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Md.; Nashville; Newark, N.J.; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, NC; Toronto; and Washington, D.C.
The cities generally share a lot in common. Most are near international airports. Nine of the candidates are among the top 10 metropolitan areas by population in the U.S., with Houston being the only one of those major cities not to make the cut. Toronto, meanwhile, is Canada’s largest city.
Austin and Miami have seen home prices rebound markedly over the past five years, while Chicago and Pittsburgh have had a more muted recovery.
But for all that these cities share in common, they have had rather divergent trajectories from a real estate perspective since the nadir of the recession. Some, such as Austin and Miami, have seen home prices rebound markedly over the past five years, while places like Chicago and Pittsburgh have had a more muted recovery.
Where will Amazon AMZN, +1.51% have the biggest impact? Here are some of the factors to consider:
Smaller cities will see a bigger impact outright
Amazon has said that the new headquarters will employ 50,000 people — but the full impact on the site selected will be much larger when taking into account other companies that may follow in Amazon’s footsteps.
For New York City or Los Angeles, that would be a drop in the bucket. Not so for Raleigh, which is the smallest finalist with just 1.2 million residents across its greater metropolitan area, said Joe Kirchner, senior economist at Realtor.com. Such an argument would also extend to other finalists such as Columbus and Indianapolis.
“If you’re bringing in that many new workers and constructing that many new homes, it’s going to have a bigger impact,” he said. (Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
Renters could feel the pinch in some cities
Renters living in the smaller candidate cities would be particularly hard hit if Amazon were to move in. People who rent their homes in Raleigh could see rents grow up to an additional 2% because of Amazon workers moving in, according to real estate website Apartment List. That could add up to an additional $15,356 spent on rent over 10 years. Renters in Columbus, Indianapolis, Pittsburgh and Nashville could also expect to see rent hikes of more than 1% on top of the average expected rent growth if they became home to Amazon’s HQ2.
Some contenders will have more capacity than others
Who has room to grow? New York and Boston have comparatively much less space to build new housing to accommodate the influx of residents. Those cities, therefore, might expect higher home price and rental appreciation than places where expanding the housing supply is easier.
However, an equally important factor here is zoning laws. Seattle’s housing boom isn’t simply a reflection of people’s excitement about Amazon and the tech sector more broadly — though that certainly contributed. The city’s zoning officials were not prepared to handle the onslaught of interest in new construction. As a result, building starts have seriously lagged housing demand, thus fueling more competition and driving prices sky-high.
And from that perspective, Amazon could be a bigger burden in some of the finalists located in the Northeast than their Southern counterparts. “Some cities are just better suited to expanding housing supply,” said Tendayi Kapfidze, chief economist at LendingTree, pointing to Dallas, Nashville, Raleigh, and Austin as candidates with laxer zoning laws.
Capacity isn’t just a question of homes for sales, but also units for rent. Rents are already extremely unaffordable in some of the 20 cities. In Spotsylvania County in Northern Virginia, for instance, the average worker would need to devote 75.5% of their wages to rent, according to figures from Attom Data Solutions. But renters there won’t necessarily be able to buy ahead of Amazon’s entrance to avoid rent hikes, as rents and home prices alike are rising faster than salaries.
Some cities are already used to rapid change
Many of the cities on Amazon’s short list have undergone serious change in recent years, and that has made them into more competitive housing markets, said Kapfidze.
Take Austin: The Texas capital was rated as the most-changed city in the U.S. by personal finance website MagnifyMoney for a host factors including population, income, and, yes, home price growth.
Meanwhile, it ranked No. 17 on LendingTree’s list of most competitive housing markets, which took into account the share of buyers who get financing lined up before choosing a home, the size of the down payments and the percentage of borrowers with high credit scores.
Also read: How winning the race to be Amazon’s second headquarters could turn out to be a curse
Many of the cities on the short list appear high up on both lists, including Denver, which is the third-most competitive market nationwide. But having endured substantial, recent change doesn’t mean that Amazon HQ2 will be the straw that breaks the camel’s back, Kapfidze argued.
“Cities like Columbus, Indianapolis and Pittsburgh would benefit more from Amazon coming into the area,” he said. “The cities that have changed the most are more nimble and better prepared to absorb and accommodate a huge influx of new residents and a different mix of business.”
The question of Toronto...
Like many of the American cities on the short list, Toronto has seen real-estate prices climb over the past 5 years. The median price of a home in the Toronto metropolitan area in December was 743,500 Canadian dollars (equivalent to $597,811 in the U.S.). That’s up 7% from a year and 63.6% from 2012, according to data from the Toronto Real Estate Board.
And the city’s rental market recently earned the dubious distinction of becoming the priciest in all of Canada, surpassing Vancouver, which had long been more expensive, based on data from real-estate website Padmapper.
So it seems like Amazon’s entrance there would result in very similar drawbacks for local residents. But for Americans moving north of the border to work for the e-commerce giant, the favorable exchange rate to Canadian currency could offset the otherwise painful blow, Canada’s National Post argued.
Amazon has narrowed the contenders for its new headquarters down to 20 cities — but the property markets in some cities could do with a boost more than others.
From a field of 238 entries, Amazon has winnowed the competition to 20 finalists: Atlanta; Austin; Boston; Chicago; Columbus; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Md.; Nashville; Newark, N.J.; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, NC; Toronto; and Washington, D.C.
The cities generally share a lot in common. Most are near international airports. Nine of the candidates are among the top 10 metropolitan areas by population in the U.S., with Houston being the only one of those major cities not to make the cut. Toronto, meanwhile, is Canada’s largest city.
Home
Personal Finance
Real Estate
Amazon’s HQ2 would have the biggest impact on real estate in these U.S. cities
Published: Jan 21, 2018 1:59 p.m. ET
10
Some of the 20 short-listed cities may be less equipped to handle the influx of new residents
Amazon has narrowed the contenders for its new headquarters down to 20 cities — but the property markets in some cities could do with a boost more than others.
From a field of 238 entries, Amazon has winnowed the competition to 20 finalists: Atlanta; Austin; Boston; Chicago; Columbus; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Md.; Nashville; Newark, N.J.; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh, NC; Toronto; and Washington, D.C.
The cities generally share a lot in common. Most are near international airports. Nine of the candidates are among the top 10 metropolitan areas by population in the U.S., with Houston being the only one of those major cities not to make the cut. Toronto, meanwhile, is Canada’s largest city.
Austin and Miami have seen home prices rebound markedly over the past five years, while Chicago and Pittsburgh have had a more muted recovery.
But for all that these cities share in common, they have had rather divergent trajectories from a real estate perspective since the nadir of the recession. Some, such as Austin and Miami, have seen home prices rebound markedly over the past five years, while places like Chicago and Pittsburgh have had a more muted recovery.
Where will Amazon AMZN, +1.51% have the biggest impact? Here are some of the factors to consider:
Smaller cities will see a bigger impact outright
Amazon has said that the new headquarters will employ 50,000 people — but the full impact on the site selected will be much larger when taking into account other companies that may follow in Amazon’s footsteps.
For New York City or Los Angeles, that would be a drop in the bucket. Not so for Raleigh, which is the smallest finalist with just 1.2 million residents across its greater metropolitan area, said Joe Kirchner, senior economist at Realtor.com. Such an argument would also extend to other finalists such as Columbus and Indianapolis.
“If you’re bringing in that many new workers and constructing that many new homes, it’s going to have a bigger impact,” he said. (Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, which is also a subsidiary of News Corp.)
Renters could feel the pinch in some cities
Renters living in the smaller candidate cities would be particularly hard hit if Amazon were to move in. People who rent their homes in Raleigh could see rents grow up to an additional 2% because of Amazon workers moving in, according to real estate website Apartment List. That could add up to an additional $15,356 spent on rent over 10 years. Renters in Columbus, Indianapolis, Pittsburgh and Nashville could also expect to see rent hikes of more than 1% on top of the average expected rent growth if they became home to Amazon’s HQ2.
Some contenders will have more capacity than others
Who has room to grow? New York and Boston have comparatively much less space to build new housing to accommodate the influx of residents. Those cities, therefore, might expect higher home price and rental appreciation than places where expanding the housing supply is easier.
However, an equally important factor here is zoning laws. Seattle’s housing boom isn’t simply a reflection of people’s excitement about Amazon and the tech sector more broadly — though that certainly contributed. The city’s zoning officials were not prepared to handle the onslaught of interest in new construction. As a result, building starts have seriously lagged housing demand, thus fueling more competition and driving prices sky-high.
And from that perspective, Amazon could be a bigger burden in some of the finalists located in the Northeast than their Southern counterparts. “Some cities are just better suited to expanding housing supply,” said Tendayi Kapfidze, chief economist at LendingTree, pointing to Dallas, Nashville, Raleigh, and Austin as candidates with laxer zoning laws.
Capacity isn’t just a question of homes for sales, but also units for rent. Rents are already extremely unaffordable in some of the 20 cities. In Spotsylvania County in Northern Virginia, for instance, the average worker would need to devote 75.5% of their wages to rent, according to figures from Attom Data Solutions. But renters there won’t necessarily be able to buy ahead of Amazon’s entrance to avoid rent hikes, as rents and home prices alike are rising faster than salaries.
Some cities are already used to rapid change
Many of the cities on Amazon’s short list have undergone serious change in recent years, and that has made them into more competitive housing markets, said Kapfidze.
Take Austin: The Texas capital was rated as the most-changed city in the U.S. by personal finance website MagnifyMoney for a host factors including population, income, and, yes, home price growth.
Meanwhile, it ranked No. 17 on LendingTree’s list of most competitive housing markets, which took into account the share of buyers who get financing lined up before choosing a home, the size of the down payments and the percentage of borrowers with high credit scores.
Also read: How winning the race to be Amazon’s second headquarters could turn out to be a curse
Many of the cities on the short list appear high up on both lists, including Denver, which is the third-most competitive market nationwide. But having endured substantial, recent change doesn’t mean that Amazon HQ2 will be the straw that breaks the camel’s back, Kapfidze argued.
“Cities like Columbus, Indianapolis and Pittsburgh would benefit more from Amazon coming into the area,” he said. “The cities that have changed the most are more nimble and better prepared to absorb and accommodate a huge influx of new residents and a different mix of business.”
The question of Toronto...
Like many of the American cities on the short list, Toronto has seen real-estate prices climb over the past 5 years. The median price of a home in the Toronto metropolitan area in December was 743,500 Canadian dollars (equivalent to $597,811 in the U.S.). That’s up 7% from a year and 63.6% from 2012, according to data from the Toronto Real Estate Board.
And the city’s rental market recently earned the dubious distinction of becoming the priciest in all of Canada, surpassing Vancouver, which had long been more expensive, based on data from real-estate website Padmapper.
So it seems like Amazon’s entrance there would result in very similar drawbacks for local residents. But for Americans moving north of the border to work for the e-commerce giant, the favorable exchange rate to Canadian currency could offset the otherwise painful blow, Canada’s National Post argued.
Tiny houses running into obstacles in Colorado
interesting article from Colorado Springs Gazette on the state of tiny home landing sites in Colorado....
When Amy Davis and her partner moved out of their house in South Florida and into a 399-square-foot cottage on wheels, they had no problem adjusting to the close quarters.
But finding a spot for their "tiny house" proved a challenge until they stumbled upon a like-minded community nestled on a hillside in Woodland Park.
Peak View Park is host to more than 40 of the units, each less than 400 square feet in size and mounted on trailers, that have been touted by HGTV shows and magazine articles as the gateway to an affordable, alternative lifestyle. But, as the new form of dwelling has made its way into housing markets, a problem has emerged:
Governments aren't quite sure how tiny houses fit in with zoning regulations and land-use codes.
"The trouble is finding a place to put them," Davis, 50, said from her miniature living room.
Governments aren't quite sure how tiny houses fit in with zoning regulations and land-use codes.
"The trouble is finding a place to put them," Davis, 50, said from her miniature living room.
The park's owners have worked with Teller County officials to legally allow the dwellings and were able to do so because the park predates a zoning rule that would have prevented them from being used as long-term residences.
In neighboring El Paso County, commissioners met with planning officials on Tuesday to discuss some of the questions that have arisen since tiny houses have become popular, including if builders should be certified, how the structures fit in with existing zoning requirements and who's in charge of enforcing the rules.
The regulatory gaps are especially pronounced in Colorado, where more than a dozen tiny home builders are based, said Darin Zaruba, founder of the Tiny House Jamboree, a national expo that attracted tens of thousands of people to Colorado Springs in 2015 and 2016.
"It's a hub of the movement and a hub of the industry," said Zaruba, who addressed commissioners. "But, the irony is, it's one of the hardest states to be dealing with where to place (the houses)."
Colorado Springs is home to manufacturers Sprout and Tumbleweed and, until earlier this year, Zaruba's company EcoCabins. He sold the jamboree to a major exhibition company when the event outgrew the Springs and moved his company's headquarters out of state, he said.
County planning and building officials have heard from residents interested in tiny living. In March, commissioners approved a zoning variance for a woman who had one of the units placed on her property, just east of Colorado Springs, in 2015 without knowing she was violating the land development code. Last month, the Colorado Springs Planning Commission OK'd another variance to allow a family to put two tiny homes on their 400-acre ranch near Colorado 83 and Shoup Road. It was a first for city planning officials, who have also expressed the desire to encourage the movement, seen by proponents as an option for those unable to afford rising housing costs.
Darryl Glenn, president of the county commissioners, echoed the sentiment on Tuesday.
"This is a tremendous opportunity to be industry and community leaders on this issue," he said.
Because most tiny houses are mounted on wheels, they are considered recreational vehicles by the land development code. One major stumbling block is that El Paso County and many other counties in Colorado have rules that prohibit recreational vehicles from being used as permanent housing. El Paso County's code also limits RVs to certain areas, such as specially designated parks and campgrounds.
Another issue at hand is building standards for tiny homes.
"Ninety percent of this market right now is do-it-your-selfers and contractors that are building out of a shed to no code," Zaruba told commissioners during the work session.
He estimated that roughly 10 manufacturers in the nation build to the standards used by the Recreational Vehicle Industry Association, which audits RV manufacturers to ensure compliance.
But certification is likely an issue for state or federal regulators to take up, said Craig Dossey, executive director of the county's Development Services Department. Pikes Peak Regional Building Department, which typically ensures that homes are constructed to meet certain standards, cannot issue building permits or certificates of occupancy if the units are considered recreational vehicles.
Commissioners also expressed support for creating legal avenues for the development of planned tiny house communities, similar to Peak View Park.
The park's owners, Matt Fredell and Pete LaBarre, are dealers for several out-of-state homebuilders, offering the miniature units for an average price of about $65,000. Homeowners living in the park pay a monthly rent of about $500 to $600 for their lots.
While the park is nearly full, Fredell and LaBarre are working with government officials on similar developments in Delta and Gunnison.
Park resident Courtney Cunard, 41, rented studio apartments in Colorado Springs for years before she moved into her tiny house.
"There's no other place I'd rather be," she said. "I was tired of paying everyone else's mortgage."
When Amy Davis and her partner moved out of their house in South Florida and into a 399-square-foot cottage on wheels, they had no problem adjusting to the close quarters.
But finding a spot for their "tiny house" proved a challenge until they stumbled upon a like-minded community nestled on a hillside in Woodland Park.
Peak View Park is host to more than 40 of the units, each less than 400 square feet in size and mounted on trailers, that have been touted by HGTV shows and magazine articles as the gateway to an affordable, alternative lifestyle. But, as the new form of dwelling has made its way into housing markets, a problem has emerged:
Governments aren't quite sure how tiny houses fit in with zoning regulations and land-use codes.
"The trouble is finding a place to put them," Davis, 50, said from her miniature living room.
Governments aren't quite sure how tiny houses fit in with zoning regulations and land-use codes.
"The trouble is finding a place to put them," Davis, 50, said from her miniature living room.
The park's owners have worked with Teller County officials to legally allow the dwellings and were able to do so because the park predates a zoning rule that would have prevented them from being used as long-term residences.
In neighboring El Paso County, commissioners met with planning officials on Tuesday to discuss some of the questions that have arisen since tiny houses have become popular, including if builders should be certified, how the structures fit in with existing zoning requirements and who's in charge of enforcing the rules.
The regulatory gaps are especially pronounced in Colorado, where more than a dozen tiny home builders are based, said Darin Zaruba, founder of the Tiny House Jamboree, a national expo that attracted tens of thousands of people to Colorado Springs in 2015 and 2016.
"It's a hub of the movement and a hub of the industry," said Zaruba, who addressed commissioners. "But, the irony is, it's one of the hardest states to be dealing with where to place (the houses)."
Colorado Springs is home to manufacturers Sprout and Tumbleweed and, until earlier this year, Zaruba's company EcoCabins. He sold the jamboree to a major exhibition company when the event outgrew the Springs and moved his company's headquarters out of state, he said.
County planning and building officials have heard from residents interested in tiny living. In March, commissioners approved a zoning variance for a woman who had one of the units placed on her property, just east of Colorado Springs, in 2015 without knowing she was violating the land development code. Last month, the Colorado Springs Planning Commission OK'd another variance to allow a family to put two tiny homes on their 400-acre ranch near Colorado 83 and Shoup Road. It was a first for city planning officials, who have also expressed the desire to encourage the movement, seen by proponents as an option for those unable to afford rising housing costs.
Darryl Glenn, president of the county commissioners, echoed the sentiment on Tuesday.
"This is a tremendous opportunity to be industry and community leaders on this issue," he said.
Because most tiny houses are mounted on wheels, they are considered recreational vehicles by the land development code. One major stumbling block is that El Paso County and many other counties in Colorado have rules that prohibit recreational vehicles from being used as permanent housing. El Paso County's code also limits RVs to certain areas, such as specially designated parks and campgrounds.
Another issue at hand is building standards for tiny homes.
"Ninety percent of this market right now is do-it-your-selfers and contractors that are building out of a shed to no code," Zaruba told commissioners during the work session.
He estimated that roughly 10 manufacturers in the nation build to the standards used by the Recreational Vehicle Industry Association, which audits RV manufacturers to ensure compliance.
But certification is likely an issue for state or federal regulators to take up, said Craig Dossey, executive director of the county's Development Services Department. Pikes Peak Regional Building Department, which typically ensures that homes are constructed to meet certain standards, cannot issue building permits or certificates of occupancy if the units are considered recreational vehicles.
Commissioners also expressed support for creating legal avenues for the development of planned tiny house communities, similar to Peak View Park.
The park's owners, Matt Fredell and Pete LaBarre, are dealers for several out-of-state homebuilders, offering the miniature units for an average price of about $65,000. Homeowners living in the park pay a monthly rent of about $500 to $600 for their lots.
While the park is nearly full, Fredell and LaBarre are working with government officials on similar developments in Delta and Gunnison.
Park resident Courtney Cunard, 41, rented studio apartments in Colorado Springs for years before she moved into her tiny house.
"There's no other place I'd rather be," she said. "I was tired of paying everyone else's mortgage."
Americans are moving westward, flocking to the Mountain and Pacific West
from united vanlines.com study, Americans are moving West!
Americans are moving westward, flocking to the Mountain and Pacific West, while the Northeast and Midwest continue to lose residents. In 2017, more residents moved out of Illinois than any other state with 63 percent of moves being outbound. Vermont had the highest percentage of inbound migration in 2017 with nearly 68 percent of moves to and from the state being inbound. Those are the results of the United Van Lines’ 41st Annual National Movers Study, which tracks customers’ state-to-state migration patterns over the past year.
As a region, the Mountain West continues to increase in popularity with 54 percent of moves being inbound. The West is represented on the high-inbound list by Oregon (65 percent), Idaho (63 percent), Nevada (61 percent) Washington (59 percent), and Colorado (56 percent). Of moves to
Oregon, the highest ranking western state, a new job or company transfer (49 percent) and proximity to family (24 percent) led the reasons for most inbound moves.
The southern states also saw a high number of people moving in with 52 percent of total moves being inbound. United Van Lines found the top reasons for moving south included company transfer/new job, retirement and proximity to family.
The Northeast continues to experience a moving deficit with New Jersey (63 percent outbound), New York (61 percent) and Connecticut (57 percent) making the list of top outbound states for the third consecutive year. Massachusetts (56 percent) also joined the top outbound list this year.
“For more than 40 years, United Van Lines has been tracking which states people are moving to and from. We also survey our customers to understand why they are moving from state-to-state,” said
Melissa Sullivan, director of marketing communications at United Van Lines. “As the nation’s largest household goods mover, the data we collect is reflective of national migration trends.”
“This year’s data reflects longer-term trends of movement to the western and southern states, especially to those where housing costs are relatively lower, climates are more temperate and job growth has been at or above the national average, among other factors,” said Michael Stoll, economist and professor in the Department of Public Policy at the University of California, Los Angeles. “We’re also seeing continued migration to the Pacific Northwest and Mountain West as young professionals and retirees leave California.”
The Mountain West was the most popular destination for retirees with one in four movers indicating they chose to move to this location for retirement. Top regions attracting movers taking new jobs included the Midwest (61 percent) and Pacific West (59 percent). The region with the largest exodus of residents due to finding jobs elsewhere was the South (61 percent). Across all regions, nearly one in five of those who moved in 2017 moved to be closer to family.
United Van Lines has tracked migration patterns annually on a state-by-state basis since 1977. For 2017, the study is based on household moves handled by United within the 48 contiguous states and Washington, D.C. This study ranks states based off the inbound and outbound percentages of total moves in each state. United classifies states as “high inbound” if 55 percent or more of the moves are going into a state, “high outbound” if 55 percent or more moves were coming out of a state or “balanced” if the difference between inbound and outbound is negligible.
Moving In
The top inbound states of 2017 were:
1. Vermont
2. Oregon
3. Idaho
4. Nevada
5. South Dakota
6. Washington
7. South Carolina
8. North Carolina
9. Colorado
10. Alabama
New to the 2017 top inbound list are Colorado at No. 9 and Alabama at No. 10 with 56 and 55 percent inbound moves, respectively.
Moving Out
The top outbound states for 2017 were:
1. Illinois
2. New Jersey
3. New York
4. Connecticut
5. Kansas
6. Massachusetts
7. Ohio
8. Kentucky
9. Utah
10. Wisconsin
Illinois (63 percent) moved up one spot on the outbound list to No. 1, ranking in the top five for the past nine years. New Jersey previously held the top spot for 5 consecutive years. New additions to the 2017 top outbound list include Massachusetts (56 percent) and Wisconsin (55 percent).
Balanced
Several states gained approximately the same number of residents as those that left. This list of “balanced” states includes Nebraska and New Hampshire.
Americans are moving westward, flocking to the Mountain and Pacific West, while the Northeast and Midwest continue to lose residents. In 2017, more residents moved out of Illinois than any other state with 63 percent of moves being outbound. Vermont had the highest percentage of inbound migration in 2017 with nearly 68 percent of moves to and from the state being inbound. Those are the results of the United Van Lines’ 41st Annual National Movers Study, which tracks customers’ state-to-state migration patterns over the past year.
As a region, the Mountain West continues to increase in popularity with 54 percent of moves being inbound. The West is represented on the high-inbound list by Oregon (65 percent), Idaho (63 percent), Nevada (61 percent) Washington (59 percent), and Colorado (56 percent). Of moves to
Oregon, the highest ranking western state, a new job or company transfer (49 percent) and proximity to family (24 percent) led the reasons for most inbound moves.
The southern states also saw a high number of people moving in with 52 percent of total moves being inbound. United Van Lines found the top reasons for moving south included company transfer/new job, retirement and proximity to family.
The Northeast continues to experience a moving deficit with New Jersey (63 percent outbound), New York (61 percent) and Connecticut (57 percent) making the list of top outbound states for the third consecutive year. Massachusetts (56 percent) also joined the top outbound list this year.
“For more than 40 years, United Van Lines has been tracking which states people are moving to and from. We also survey our customers to understand why they are moving from state-to-state,” said
Melissa Sullivan, director of marketing communications at United Van Lines. “As the nation’s largest household goods mover, the data we collect is reflective of national migration trends.”
“This year’s data reflects longer-term trends of movement to the western and southern states, especially to those where housing costs are relatively lower, climates are more temperate and job growth has been at or above the national average, among other factors,” said Michael Stoll, economist and professor in the Department of Public Policy at the University of California, Los Angeles. “We’re also seeing continued migration to the Pacific Northwest and Mountain West as young professionals and retirees leave California.”
The Mountain West was the most popular destination for retirees with one in four movers indicating they chose to move to this location for retirement. Top regions attracting movers taking new jobs included the Midwest (61 percent) and Pacific West (59 percent). The region with the largest exodus of residents due to finding jobs elsewhere was the South (61 percent). Across all regions, nearly one in five of those who moved in 2017 moved to be closer to family.
United Van Lines has tracked migration patterns annually on a state-by-state basis since 1977. For 2017, the study is based on household moves handled by United within the 48 contiguous states and Washington, D.C. This study ranks states based off the inbound and outbound percentages of total moves in each state. United classifies states as “high inbound” if 55 percent or more of the moves are going into a state, “high outbound” if 55 percent or more moves were coming out of a state or “balanced” if the difference between inbound and outbound is negligible.
Moving In
The top inbound states of 2017 were:
1. Vermont
2. Oregon
3. Idaho
4. Nevada
5. South Dakota
6. Washington
7. South Carolina
8. North Carolina
9. Colorado
10. Alabama
New to the 2017 top inbound list are Colorado at No. 9 and Alabama at No. 10 with 56 and 55 percent inbound moves, respectively.
Moving Out
The top outbound states for 2017 were:
1. Illinois
2. New Jersey
3. New York
4. Connecticut
5. Kansas
6. Massachusetts
7. Ohio
8. Kentucky
9. Utah
10. Wisconsin
Illinois (63 percent) moved up one spot on the outbound list to No. 1, ranking in the top five for the past nine years. New Jersey previously held the top spot for 5 consecutive years. New additions to the 2017 top outbound list include Massachusetts (56 percent) and Wisconsin (55 percent).
Balanced
Several states gained approximately the same number of residents as those that left. This list of “balanced” states includes Nebraska and New Hampshire.
Colorado is in nation's top 10 for people moving into states, says U-Haul
interesting report on trends for people moving westward! from Denver Business Journal...
When it comes to people moving into states, Colorado ranks in the nation's top 10.
According to U-Haul, Colorado ranked No. 9 nationally for inbound migration. In 2016, the state ranked No. 11 and a year earlier, it ranked No. 22.
Arriving trucks accounted for 50.3 percent of all one-way U-Haul traffic in Colorado, U-Haul said, adding that its growth state calculations are "calculated by the net gain of one-way U-Haul truck rentals entering a state versus leaving a state during a calendar year."
"Texas was the No. 1 Growth State for the second year in a row. Florida, Arkansas, South Carolina and Tennessee rounded out the top five," U-Haul said.
"I've been in this area four-plus years and the growth I've seen is amazing. You used to drive down the Interstate 25 corridor and see open spaces everywhere. Now you hardly pass a dirt lot. There are no gaps. Colorado is bursting at the seams. Denver is overflowing so much that folks are moving to the outskirts and into Westminster and Thornton," said Mike Blau, U-Haul Company of Northwest Colorado president, in a statement.
U-Haul's figures jibe with similar figures released last week by United Van Lines.
That company also ranked Colorado as the No. 9 inbound migration state in the country.
When it comes to people moving into states, Colorado ranks in the nation's top 10.
According to U-Haul, Colorado ranked No. 9 nationally for inbound migration. In 2016, the state ranked No. 11 and a year earlier, it ranked No. 22.
Arriving trucks accounted for 50.3 percent of all one-way U-Haul traffic in Colorado, U-Haul said, adding that its growth state calculations are "calculated by the net gain of one-way U-Haul truck rentals entering a state versus leaving a state during a calendar year."
"Texas was the No. 1 Growth State for the second year in a row. Florida, Arkansas, South Carolina and Tennessee rounded out the top five," U-Haul said.
"I've been in this area four-plus years and the growth I've seen is amazing. You used to drive down the Interstate 25 corridor and see open spaces everywhere. Now you hardly pass a dirt lot. There are no gaps. Colorado is bursting at the seams. Denver is overflowing so much that folks are moving to the outskirts and into Westminster and Thornton," said Mike Blau, U-Haul Company of Northwest Colorado president, in a statement.
U-Haul's figures jibe with similar figures released last week by United Van Lines.
That company also ranked Colorado as the No. 9 inbound migration state in the country.
Denver metro area for-sale housing stock at an all time low, part of nationwide pinch, analysts say
Looking to sell? Still a great time time to sell....reports from Denver Post.com
Denver metro area for-sale housing stock at an all time low, part of nationwide pinch, analysts say
Americans are buying RVs, boats and personal aircraft at an unprecedented clip, data shows. Racehorse purchases have ticked up to prerecession levels.
Those are a few unconventional signs of the country’s booming economy and strong consumer confidence, economist Elliot Eisenberg shared at the Denver Metro Association of Realtors 2018 economic summit Thursday.
One problem is sucking the wind from the country’s economic sales, Eisenberg said, and it’s one the Denver area is all too familiar with: A chronic shortage of for-sale housing, particularly the affordable kind.
“We built 850,000 single-family homes last year,” the economist said during his presentation. “That’s a recessionary low level. This is nuts.”
According to Eisenberg, homebuilders came up about 300,000 homes short of the national need in 2017. He expects new construction to fall 250,000 rooftops short of need in 2018, compounding a national shortage already of more than 4 million houses.
Statistics he shared from the National Association of Realtors showed that national housing inventory has fallen for 30 consecutive months, declining 6.4 percent in 2017.
In a conundrum that certainly resonates in Colorado, home prices are outpacing wage increases 2-to-1. When developers do build single-family homes, they’re building higher-end products to maximize profit in the face of rising regulations and labor costs.
“You can build million-dollar homes. It’s good for the economy, but it’s not as good as building five $200,000 homes, because folks can’t get in,” Eisenberg said.
Eisenberg provided the macro view of a problem the Denver metro area has been experiencing in micro for years.
“Inventory is one of our biggest concerns we have going today,” Steve Danyliw, chairman of the association of Realtors’ market trends committee, said Thursday, pointing to a year-end stock of 3,854 properties on the market, the lowest level since record-keeping began in 1985. “Pretty much for the last four years, we have been in a substantial deficit in terms of inventory.”
Danyliw, owner/broker with Littleton-based Danyliw & Associates, highlighted association statistics that showed that if no new single-family homes were added to the market in January, the metro area would sell out of housing stock by the first week of February. The problem is worse for cheaper properties. The stock of homes selling for $200,000 to $300,000 would sell out in around 10 days.
Analysts say it’s no bubble in Denver either. Credit is hard to come by and job growth is strong even if wages aren’t keeping up, data shows. A major drag on the ability to meet the demand — nationally and locally — is a worker shortage in the construction industry. A recent survey of industry professionals shows 56 percent of Colorado firms in the construction industry view finding enough workers as their biggest concern in 2018.
Despite the grim outlook for meeting demand, Danyliw did highlight one positive trend for would-be homebuyers: Median home prices in metro Denver — while at an all-time high of more than $434,000 and rising — grew more slowly last year than in 2015 or 2016. After rising by 13.3 percent in January 2015, the pace of price growth dropped to 8.3 percent in December 2017, with signs it will continue to drop to more sustainable levels this year.
“This is not necessarily saying that there is a bubble that is about to burst, but what it does say is the rapid rate is growth is starting to slow,” he said.
Denver metro area for-sale housing stock at an all time low, part of nationwide pinch, analysts say
Americans are buying RVs, boats and personal aircraft at an unprecedented clip, data shows. Racehorse purchases have ticked up to prerecession levels.
Those are a few unconventional signs of the country’s booming economy and strong consumer confidence, economist Elliot Eisenberg shared at the Denver Metro Association of Realtors 2018 economic summit Thursday.
One problem is sucking the wind from the country’s economic sales, Eisenberg said, and it’s one the Denver area is all too familiar with: A chronic shortage of for-sale housing, particularly the affordable kind.
“We built 850,000 single-family homes last year,” the economist said during his presentation. “That’s a recessionary low level. This is nuts.”
According to Eisenberg, homebuilders came up about 300,000 homes short of the national need in 2017. He expects new construction to fall 250,000 rooftops short of need in 2018, compounding a national shortage already of more than 4 million houses.
Statistics he shared from the National Association of Realtors showed that national housing inventory has fallen for 30 consecutive months, declining 6.4 percent in 2017.
In a conundrum that certainly resonates in Colorado, home prices are outpacing wage increases 2-to-1. When developers do build single-family homes, they’re building higher-end products to maximize profit in the face of rising regulations and labor costs.
“You can build million-dollar homes. It’s good for the economy, but it’s not as good as building five $200,000 homes, because folks can’t get in,” Eisenberg said.
Eisenberg provided the macro view of a problem the Denver metro area has been experiencing in micro for years.
“Inventory is one of our biggest concerns we have going today,” Steve Danyliw, chairman of the association of Realtors’ market trends committee, said Thursday, pointing to a year-end stock of 3,854 properties on the market, the lowest level since record-keeping began in 1985. “Pretty much for the last four years, we have been in a substantial deficit in terms of inventory.”
Danyliw, owner/broker with Littleton-based Danyliw & Associates, highlighted association statistics that showed that if no new single-family homes were added to the market in January, the metro area would sell out of housing stock by the first week of February. The problem is worse for cheaper properties. The stock of homes selling for $200,000 to $300,000 would sell out in around 10 days.
Analysts say it’s no bubble in Denver either. Credit is hard to come by and job growth is strong even if wages aren’t keeping up, data shows. A major drag on the ability to meet the demand — nationally and locally — is a worker shortage in the construction industry. A recent survey of industry professionals shows 56 percent of Colorado firms in the construction industry view finding enough workers as their biggest concern in 2018.
Despite the grim outlook for meeting demand, Danyliw did highlight one positive trend for would-be homebuyers: Median home prices in metro Denver — while at an all-time high of more than $434,000 and rising — grew more slowly last year than in 2015 or 2016. After rising by 13.3 percent in January 2015, the pace of price growth dropped to 8.3 percent in December 2017, with signs it will continue to drop to more sustainable levels this year.
“This is not necessarily saying that there is a bubble that is about to burst, but what it does say is the rapid rate is growth is starting to slow,” he said.
Thursday, January 4, 2018
Metro Denver home sales and prices hit new high in 2017; inventory at record low
good summary on 2017 Metro Denver market from Denver Post....
Average home sale price was nearly half a million dollars in 2017
Home sales and prices in metro Denver once again hit record highs in 2017, but the pace of price gains slowed as the market reached a higher altitude, according to the latest Denver Metro Real Estate Market Trends Report.
A record 57,788 single-family homes and condos sold across metro Denver last year, an increase of 2.93 percent form 2016, and ahead of the 2015 record of 56,062.
The average price of a single-family home sold last year reached $480,140, an increase of 8.7 percent from 2016. The median sold price, the point where half the homes sell for more and half for less, was $410,000, an increase of 7.9 percent.
Condo prices rose even more on a year-to-date basis, hitting an average sales price of $318,904 last year, up 10 percent from 2016, and a median sales price of $270,000, up 12.15 percent from 2016.
The uptick in the number of sales combined with higher prices pushed the total sales volume over $25 billion, up from $22.2 billion in 2016, $20.3 billion in 2015 and $17.6 billion in 2014.
In a sign of how far the market has come, the homes sales volume back in 2011 was around $9.9 billion, according to the report from the Denver Metro Association of Realtors. The report is based primarily on resales of existing homes but includes a small number of new homes.
Inventory shortages continue to drive price gains. As the year ended, there were only 3,854 homes on the market, a record low and slim pickings in a metro area of 3 million residents. Between 1985 and 2016, buyers had on average 13,702 homes available at the end of December.
“The lack of active listings should concern us all,” said Steve Danyliw, chairman of the DMAR’s Market Trends Committee, in comments included with the report. “Only time will tell if more sellers will choose to stay in their current homes, afraid that they won’t be able to find a replacement.”
Danyliw predicted that double-digit price increases, which occurred in 2015 and 2016, are a thing of the past as higher prices push more potential buyers out of the market. But any kind of slowing would work in the favor of buyers.
Average home sale price was nearly half a million dollars in 2017
Home sales and prices in metro Denver once again hit record highs in 2017, but the pace of price gains slowed as the market reached a higher altitude, according to the latest Denver Metro Real Estate Market Trends Report.
A record 57,788 single-family homes and condos sold across metro Denver last year, an increase of 2.93 percent form 2016, and ahead of the 2015 record of 56,062.
The average price of a single-family home sold last year reached $480,140, an increase of 8.7 percent from 2016. The median sold price, the point where half the homes sell for more and half for less, was $410,000, an increase of 7.9 percent.
Condo prices rose even more on a year-to-date basis, hitting an average sales price of $318,904 last year, up 10 percent from 2016, and a median sales price of $270,000, up 12.15 percent from 2016.
The uptick in the number of sales combined with higher prices pushed the total sales volume over $25 billion, up from $22.2 billion in 2016, $20.3 billion in 2015 and $17.6 billion in 2014.
In a sign of how far the market has come, the homes sales volume back in 2011 was around $9.9 billion, according to the report from the Denver Metro Association of Realtors. The report is based primarily on resales of existing homes but includes a small number of new homes.
Inventory shortages continue to drive price gains. As the year ended, there were only 3,854 homes on the market, a record low and slim pickings in a metro area of 3 million residents. Between 1985 and 2016, buyers had on average 13,702 homes available at the end of December.
“The lack of active listings should concern us all,” said Steve Danyliw, chairman of the DMAR’s Market Trends Committee, in comments included with the report. “Only time will tell if more sellers will choose to stay in their current homes, afraid that they won’t be able to find a replacement.”
Danyliw predicted that double-digit price increases, which occurred in 2015 and 2016, are a thing of the past as higher prices push more potential buyers out of the market. But any kind of slowing would work in the favor of buyers.
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