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Denver Housing Prices Rise While Inventory Drops

Darwin Horan

A Colorado-based entrepreneur, Darwin Horan is the owner and president of Ventana Capital, Inc., a land developer and builder. Since starting the company, Darwin Horan has been involved in the construction of over 15,000 single-family homes and the development of over 20,000 lots.

According to Zillow and the Denver Metro Association of Realtors (DMAR), average home prices in Denver have been steadily rising during 2017, while home availability has been dropping. Within the metro area, the average cost of a home in October was $380,000, which is about $22,000 higher than the average price in October 2016. This dropped slightly in November 2017 to $375,000, but it was still an 8 percent increase compared to the same time last year.

This increase in average home prices is due to the decreasing availability of homes in the metro Denver area. Active listings in November hit a record low of 5,131 for the month. This was 19 percent lower than the number of active listings in October and close to 8 percent below average listings in 2016. Denver has experienced a drop in home inventory throughout 2017, as has much of the rest of the country. Zillow’s chief economist expects this shortage to continue into 2018, meaning that average home prices will continue to rise.
However, the lack of inventory will encourage home builders in Denver to introduce more houses at a lower price point. This increase in new homes is expected to happen in the Denver suburbs rather than in the city proper, due to a high number of residents and the high costs of building there.

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