Good news for buyers in the Mile High City: According to a recent analysis from Zillow, with the exception of California’s biggest cities, no other housing market is cooling as quickly this year
Denverites Among Top House Hoppers In The Nation
When it comes to house hopping, do residents in Denver move around more than other larger metros in the country? According to online mortgage brokerage LendingTree, the answer is yes. In fact, out of the 50 largest metros in the country, metro Denver residents stayed in their homes the fifth shortest amount of time on average.
Metro Denver homeowners stay in their residences an average of 6.63 years, according to the study, which is based on the latest American Community Survey put out by the U.S. Census Bureau. That average includes all the seasoned residents who have stayed put for 50 or 60 years, so the households that do move around are probably spending less time than that average in one place.
Only owners in Las Vegas at 6.36 years; Phoenix at 6.43 years; Austin, Texas at 6.49 years; and Orlando at 6.59 years put down shallower roots after purchasing a home.
It’s worth noting that all those cities are in much warmer climates, and they have a much lower median home price than Denver, which came in at $386,400. But like Denver, they have seen an influx of newcomers. The fact that transplants who buy a home start at zero can bring the average down.
Over long periods of time, home prices rise at the rate of inflation plus 1 percent or less a year. Slow appreciation rates create an incentive to stay put, especially when commissions of 5 to 6 percent are part of the cost of selling.
However, between 2014 and 2017, Denver had the highest rate of home price appreciation of the 50 metros, at 40 percent, according to the LendingTree report. When home prices rise at double-digit annual rates, as they did in Denver until last year, owners build a significant equity cushion quickly.
They can use it to upgrade to a more expensive home, or they can just take the money and run. One thing areas with the shortest tenure tend to have in common is high home price appreciation.
Whether your housing goals are long or short term, there’s no time like the present to become a homeowner in Denver. If you’re ready to see what the Mile High City has to offer contact Metrowest – we’d love to show you around!
Brent was born and raised in Colorado and enjoys all that the state has to offer. Brent is a graduate of Metropolitan State University of Denver, where he received a BS in Business Management. After ....