A Look Back at the 2018 Foothills Real Estate Market©

Jan 22, 2019

In 2018, we saw the average monthly inventory remain relatively flat and the average home price increase. This has been a trend for the past couple years. Here are some statistics for 2017 and 2018 in a few selected areas:

ACTIVE INVENTORY 2017 Average Inventory 2018 Average Inventory Percentage Increase/Decrease
Denver 1,673 1,742 4% Increase
Jefferson 1,096 1,096 Flat
Park 165 158 5% Decrease
Clear Creek 54 60 11% Increase
Gilpin 39 35 11% Decrease
Genesee 18 13 28% Decrease
SOLD INVENTORY 2017 Number Sold 2018 Number Sold Percentage Increase/Decrease
Denver 13,346 12,862 4% Decrease
Jefferson 10,643 8,982 16% Decrease
Park 621 574 8% Decrease
Clear Creek 222 249 11% Increase
Gilpin 120 130 8% Increase
Genesee 53 50 6% Decrease
SALES PRICE 2017 Average Sold Price 2018 Average Sold Price Percentage Increase/Decrease
Denver $472,742 $514,092 9% Increase
Jefferson $427,757 $462,728 8% Increase
Park $325,757 $364,529 11% Increase
Clear Creek $396,922 $465,476 15% Increase
Gilpin $363,100 $422,608 14% Increase
Genesee $884,658 $878,814 >1% Decrease

*all statistics, except Genesee, are by County. For Genesee, we only looked at homes that are part of the Genesee Foundation.

There are currently only 40 homes for sale in all of Clear Creek. In Denver, there are approximately 1,470; 809 in Jefferson County; 117 in Park County; 18 in Gilpin County; and, 7 in Genesee. The above statistics also mean that we can expect to see our real property taxes increase again in the next valuation cycle. County Assessors are keenly aware of these data.

We continue to see the average number of homes on the market remain fairly constant while the average sold price went up significantly. Consider that the number of sold homes went down in most market areas in the Denver Metro area. This begs the question as to whether home prices have gone up too much to keep up with the market.

We even looked at various communities in the area and we would be happy to send you the statistics for your specific neighborhood if you would like them. Please email us at info@AlarisProperties.com, let us know which community or neighborhood you would like to see the statistics, and we will send the information.

Further, the overall Colorado economy is strong, including one of the highest median income numbers in the country with a solid jobs report to back it up.  I have seen many write about a potential real estate bubble; however, local, regional and national economists suggest we may not see a correction until 2021. With the number of people moving to the area, combined with the solid numbers, I predict a solid real estate market for 2019.

The one area where we received some cautionary input was from the rental market.  The overall vacancy rate for the entire Denver metro region is at 6%. This time last year, it was at 5.6%, and it is expected to increase. Nonetheless, rents continue to rise, but at a much slower pace than in the past few years. The average rental amount in the Denver metro region is $1,484. We will be watching this market segment to see what happens.

In the mountain metro area, homes sell relatively quickly, when homes are priced correctly. We fully expect this trend to continue because the relief of new construction neighborhoods does not reach Genesee or the Idaho Springs, Georgetown, Evergreen, Conifer, Bailey and Pine areas. There are only a few new construction listings in these areas.

Those thinking of selling in the mountain metro area could benefit greatly by doing so now or in the near future as buyer demand drives up the listing price and property tends to sell relatively fast.

It may surprise you to know that there are over 150 new home communities in the greater Denver metro region. New home builders understand this huge demand, leading to a burst of new construction. With population anticipated to grow, new home builders are pushing inventory onto the market as fast as possible. Just look at the Denver skyline and you will see all the cranes.

We are excited to see how this market changes with the classic battle of supply and demand. Call me with any questions about the market or to interview me about listing your home. You can reach me by email at Jon@AlarisProperties.com or by calling me at 303-907-7668. At Alaris, Knowledge is Key.

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