Homes in Denver continue to sell quickly, spending an average of just 24 days on the market. A shortage of listings continues to put downward pressure on sales volumes and upward pressure on prices. May saw the average sold price of a Denver-area home just surpass the $400,000 mark for the first time ever. Home prices in May were up four percent month over month and nine percent as compared to last year. Kirby Lunaker, president and CEO of REcolorado commented, “That bodes well for home sellers, as well as home buyers who continue to move quickly in an effort to purchase moderately-priced homes while interest rates remain low.”
Despite the growth of cost in May, home sales also saw strong demand, selling 4,939 homes up 10 percent from April. Typically, this time of year inventory levels of homes rises, but robust demand has kept this trend from continuing at their usual pace. This shortage of listings is no doubt the reasoning behind the increase in average home prices in Denver, but with demand rising and interest rates remaining low, it may be beneficial to act sooner than later.
If you’re looking for a solid property investment this year and wondering what property types are holding the most promise for investment, we may have some guesses for you. According to Realtor Magazine at www.realtor.org, the top 5 solid property investments for 2016 are as follows:
1. Senior housing – An aging population is making senior housing a good bet for investors
2. Student housing – The pre-tax yield for student housing properties was 7.6% during the first quarter of this year
3. Warehouses – Big-box flex warehouse space is one of the healthiest industrial sub-sectors, which has been getting a lift from e-commerce tenants
4. Neighborhood community centers – Situs RERC calls the neighborhood community center the second-best investment at the moment, right behind industrial warehouses
5. Self-storage – The price appreciation within the self-storage industry has risen 16% over the past year