The answer to that question is simple: Denver had the lowest percentage of homes falling in value of 35 major metropolitan statistical areas across the country in August of this year from August 2014. In fact, a mere 1.5 percent of homes in the Denver area have dropped in value, which is a stark contrast to the national average of close to 30 percent of homes depreciating, according to Zillow. Additionally, Denver has the highest rate of home appreciation, with homes rising 16.3 percent, almost five times the national average of 3.3 percent.
The median home value in Denver is $322,500, according to Zillow, which predicts they will rise a further 5 percent within the next year. However, keep in mind, as I reported earlier, that Colorado is experiencing a supply and demand problem due to too many buyers and not enough homes on the market. But remember that real estate, like anything else, is cyclical, and Denver has weathered housing shortages in the past. For example, in 1979 Denver faced a housing crisis as well as a mid-1970s recession that caused new construction to dramatically slow down, but Denver eventually rebounded, as it will again.
The facts don’t lie, and because Denver has the lowest percentage of homes dropping in value, it is still a buyer’s best bet. As for sellers, home values are increasing and will continue to increase. These facts combined make Denver one of the hottest real estate markets in the country.