As prices continue their rise in the Denver metro area, many are wondering just how high they will go, and experts are debating various scenarios.
Zillow recently reported that while it expects homes on the national level to appreciate 3.1% over the new year, it predicts Denver’s home prices will rise only 2.9%.
This, however, doesn’t jibe with the evaluation of the Denver Business Journal, which counters that “Zillow’s estimate of an annual Denver home appreciation gain of only 2.9% doesn’t match with the city’s current rising home prices.”
The Journal has a point. In October, the monthly market report from Denver Metro Association of Realtors noted that the average sold price for residential properties was up 3.89% from the prior month and up 11.85% from October of 2016. Given continued high demand and low inventory, few expect the home appreciation to level off as dramatically as Zillow predicts.
As we often advise our clients, Zillow estimates are inexact at best. We side with others, who believe homes will continue to appreciate at a level higher than the national average.
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