The study, by Auction.com, examined the 49 largest U.S. markets for their “current and expected future housing fundamentals.” Denver headed the list, followed by San Antonio, Nashville, Fort Lauderdale and Dallas. All ranked high in rising home prices, strong housing demand, favorable affordability and strong economic and demographic conditions that indicate solid future demand.
“As the U.S. housing market has continued to recover from the Great Recession, we’ve seen significant regional variances in terms of both price appreciation and sales volume,” said Auction.com Executive Vice President Rick Sharga. “Earlier in the recovery, most of the growth came from markets that had suffered the biggest declines during the housing bust, but what we’re seeing today is more in line with fundamental economic trends: markets with the best job growth and population growth are recovering most quickly.”
The report lauds Denver for its booming local economy, which continues to drive demand. It also recognizes Denver’s high employment rate — 4.3% above its 2014 level — and its burgeoning population, which is growing almost three times faster than the national average.
“As a result,” notes the report, “home prices have been appreciating at a torrid pace since mid-2012.” Indeed, prices continue to make record strides. The average cost of a single family homes hit new highs in April, topping $400,000 for the first time, according to REcolorado’s monthly market report.
That’s good news for sellers, but buyers also have reason to celebrate REcolorado’s report. In April, inventory rose significantly—21% over March. The number of homes under contract also rose: by 7% over March.
“Improved inventory expanded choices for consumers in April, bringing more buyers to the market and contributing to positive sales,” REcolorado’s president and CEO Kirby Slunaker told Inside Real Estate News.
As the summer season kicks into gear, be sure to follow the Denver real estate market on our blog, and start your property search here on our website.