Denver home sellers are reaping some of the best profits in the country, according to a new report.
In the second quarter of 2017, Denver sellers realized an eye-catching average return on their home investment of 62%. That’s compared with an average of 26% gain by home sellers nationally.
The news was released by ATTOM Data Solutions, a real estate data firm. ATTOM noted that nationwide, sellers earned an average of $51,000 profit from their homes during the second quarter of the year. This marks the highest seller price gains since 2007. Denver sellers’ return was more than double that national average.
Of the 118 metro areas with at least 1,000 home sales in the second quarter of 2017 (and which had previous sale information available), those cities with the highest returns were San Jose, California (75%); San Francisco (65%); Seattle (63%); Modesto, California (62%); and Denver (62%).
In July, the first month of the third quarter, Denver Metro Association of Realtors (DMAR) report showed local prices dropping, but just slightly. The average sold price dipped .82%, to $449,054 and the median sold price dropped 1.28%, to $385,000. Both numbers still represent more than a 9% jump in price over last July.
Nationwide, the housing market remains tight, with an “historically short supply of affordable homes for sale,” according to CNBC. Realtor.com reported that the number of homes for sale in June was 11% lower than a year earlier.
Tight inventory has led to rising prices. “With no end to the escalation in sight, affordability is rapidly deteriorating nationally,” Frank Martell, president and CEO of CoreLogic, told CNBC. “While low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much bigger challenge in the years ahead until the industry resolves the housing supply challenge.”
In July, Denver’s median price of $385,000 purchased, on average, a 1,790-square-feet single-family home with four bedrooms and three bathrooms, according to Steve Danyliw, chairman of the DMAR Market Trends Committee.