The secret is out that Colorado is one of the fasting growing and most desirable places to live in the country, but what are the top reasons why? In addition to a booming real estate market, wealth of recreational offerings and a robust economy, Colorado offers a few unique draws that you might not have expected. By discovering the lesser-well-known reasons that make this state great first, your real estate investment decisions will be guided well in advance of everyone else.
Real Estate Market Health
Based on home turnover rates, the housing market health index, days on market, and average ratio of home sale price to home list price – Colorado boasts one of the healthiest real estate markets in the country. A continued hot topic remains the low inventory levels found throughout Colorado, especially in Metro Denver and Boulder. In short, lower inventory often drives real estate prices up- great news for Sellers. For Buyers, good news is that during quarter 1, from January 1, 2017 to March 31, 2017, levels of inventory have demonstrated an uptick. In Metro Denver, inventory of active listings rose from 4,369 in January 2017, to 4,834 in March 2017, an 11% increase. In Boulder, the number of active listings reached 379 in March 2017, an increase of 41% from only 268 active listings in January 2017. In the Vail Valley, active listings reached 746 in March 2017, a 13% increase from only 658 active listings in January 2017. In Summit County, inventory peaked at 562 active listings in January 2017, increasing to 690 active listings in March 2017, a 23% increase. Across the board in the first quarter, a trend of increasing inventory bodes well for more options for buyers and a more balanced market throughout Colorado.
A Booming State Capital
Denver’s population is growing fast. According to the Denver Business Journal, with a rate of population growth over 12.2% from 2010 to 2016, Denver ranks 12th in the nation among major metros for rate of population growth- a pace of about 949 new residents each week. The influx of residents means the growth in population of the metro area’s’ surrounding resort communities too. With over 11 major ski resorts within a 100-mile radius of metro Denver, resort communities are experiencing both population growth and dwindling shoulder seasons.
Top Cities for Resale Price Gains
According to the latest S&P/Case-Shiller Home Prices Indices report, home-resale prices in metro Denver rose by 8.9% in December from one year earlier, ranking third among the 20 large cities tracked by the Case-Shiller monthly report for year-over-year growth in home resale prices. Denver has shown the highest year-over-year price increases among the 20 cities for each of the last 11 months, with the national average only demonstrating a 5.8% increase year-over-year. In Boulder, home values have increased 8.8% over the past year, according to Zillow, and it is forecasted this number will rise 1.4% within the next year.
Top State for Home Sellers
With home prices appreciating more than 10% in Denver over the past year, according to Clear Capital, the Colorado real estate market is showing no signs of slowing down. Redfin research says half of all Denver homes are in pending sale in just 18 days, trailing only Seattle (12 days) and Oakland (15 days) in the country. Average days on market for homes sold in February 2017 in Denver was 38, trailing only San Francisco at 32 and Omaha, Nebraska at 34.
Employment Gains in 2017
With Colorado expecting to rank among the top 10 states for job growth for the sixth year in a row, according to the 2017 Colorado Business Economic Outlook from the University of Colorado Boulder, it is no surprise that the economy is positioned for growth in 2017. The states relatively central location makes it a natural location as a distribution hub for the American west, while also supporting a number of growing industries in technology and telecommunications, leading the state to be consistently recognized as a top-ranked state for employment in Forbes Best Places for Business and Careers.
As Colorado’s urban centers and resort areas continue to grow, it has never been more important for a buyer or seller to be connected with an expert in the marketplace. LIV Sotheby’s International Realty has experienced brokers who can assist homebuyers in determining a competitive offer in the Colorado or resort-area markets, and beyond.