The Denver real estate market is known to be a great long term investment for buyers and rental investors alike. Recently dubbed by U.S. News & World Report as one of the best places to live in the United States, the Mile High City offers young couples and families a wonderful place to raise their family. The city takes pride in having several good schools, relatively low crime rate, great restaurants, and tons of parks and recreational centers for outdoor adventures.
Also, Denver’s thriving economy has made it a hotspot for millennials, who relocate here for employment opportunities or to start their own business. A lot of these millennials start out renting apartments or condos at first. Median rent per month in Denver is $2,200, and the rates for rental properties range from $350 to $8000 per month.
A Strong Economy Equals a Strong Housing Market in Denver, CO
It can be said that the main driver for the thriving overall housing and real estate investment market in Denver, CO is its steady and strong economy. The state of Colorado ranks second overall in the nation in terms of economy and shares the spot with Hawaii for having the lowest unemployment rate. With a booming stock market, federal tax breaks, and a bourgeoning oil and gas industry, to name a few, Denver residents are financially able to invest in houses and condos. In fact, 58% of the Mile High City’s residential properties are owned.
A recent study shows that there is a growing number of millennials living in Denver, who make up 22% of the city’s population, deciding to buy their homes instead of renting. More and more millennials are opting to move to Denver, CO to work or start their own business because of the plethora of opportunities in this location. And, once they have experienced the excellent quality of life that Denver offers, most of them decide to stay and start their own families.
2019 Denver Condo Market
The overall 2019 real estate market in Denver, Colorado is one of the hottest housing markets in the nation. This year has started well for both homebuyers and apartment rental investors, and the rest of the year is projected to perform well.
In January, the price of condos went up 3% year over year to $356,841. Condos spent an average of 60 days on the market. The following month, the average sale price of condos went down to $349,351. The Denver Metro Area hit a five-year high for new listings in the month of February, with 5,089 new homes for sale which is a 9% increase from the previous year and 6% from January. Investing in condos remain considerably less expensive compared to single-family homes, having a median sale price of $297,500 versus $430,100 for detached single family homes.
For the month of March, the price of condos was up 2% from March 2018, at an average sale price of $360,418. Overall, sellers continued to add new listings of homes for sale to the market in March, around 6,248 which is an increase of 23% compared to the previous month. By month end, active listings of homes for sale was 6,269, 36% higher than in 2018 and 7% higher than the end of the previous month. Condos spent an average 64 days on the market in March.
In April, the price of condos was up 3% from the same month last year, at an average of $365,646. Condos were on the market for 57 days. In the succeeding month, the price of condos was up 6% from May 2018, at an average of $378,964 and average days on the market was 57. By June, the Denver housing market saw the price of condos up 2% year over year, at an average sale price of $369,778. Days on the market was down to just 47 days, indicating increasing demand for condos.
The year-to-date average sold price for Denver condos is $350,766, representing an 11.38% increase over last year, while the median price of condos sold is $299,900, up 12.34% from last year. The condo with the highest sale price was bought for $1,290,000. This unit has three bedrooms, four bathrooms, and 2,397 above ground square feet.
Things to Consider Before Buying a Condo in Denver, CO
Aside from architectural differences, there are several other things that differentiate a single family home from a condo. For one, you become part of a community when you decide to reside in a condo. There are also lots of amenities available to residents, such as clubhouse, swimming pool, recreational area, and maintenance services. But aside from these benefits, a real estate buyer needs to review certain other factors before deciding to buy a condo, including the following:
1. Condominium Association/Property Management Team
The Condominium Association or the Property Management Team is in charge of ensuring that the units and the entire building are well-maintained. Before you decide to buy a condo, it would be best for you to check whether the management team is professional, capable, efficient, and accommodating.
2. Your Responsibilities as Unit Owner
As a unit owner, you are responsible for your own condo unit. And as condo buildings have common areas or shared spaces, you will need to know which area is yours and which ones are shared. You will also need to know what your responsibilities are, to avoid sanctions or penalties. Different condos have different sets of rules, so make sure to get a list of these rules and regulations and see if you agree with their terms.
3. Insurance Coverage and Additional Fees
Buying a condo entails having insurance, and you will need to know the association’s insurance policy and what it covers. You also need to do your due diligence and make sure that you’re protected. As for additional fees, most condominium unit owners are required to pay monthly association fees which is mainly used for the maintenance of the building. This is paid by the unit owners in addition to their mortgage.
4. The Rules and Regulations
Every condominium has its own set of rules and regulations that are in place to ensure the comfort and lifestyle of all its residents. It would be best for you to learn these policies prior to buying a unit, as certain rules may contradict with your daily routine or lifestyle. For instance, a condo may have rules regarding age restrictions, visitors, pets, and even smoking.
When buying a condo, location is very important. Be sure to check the nearby establishments and see if the neighborhood is something that you would be happy to be in.
The Mile High City is an excellent location to work in, raise your family, pursue one’s studies, and spend the rest of one’s retirement years. If you are exploring your options among the many wonderful condominiums in Denver, CO, I can help. Just give me a call at 720-437-0224 or send me an email at [email protected] to schedule an appointment or if you have any questions.