Not all Denver Neighborhoods have enjoyed the same home price appreciation. While the better Denver neighborhoods located close to Cherry Creek and Downtown have generally appreciated more, some southern Denver neighborhoods have stagnated or even declined slightly in average home value appreciation.
Overall Denver Home Price Appreciation
Just ask any potential home seller. What’s the value of your home? Usually you will hear an inflated figure. Because, local media has been promoting the housing shortage in Denver and the resulting Denver home price appreciation.
But, the fact is that different neighborhoods can have substantially different amounts of home appreciation. And, yes, areas close to downtown have generally experienced greater home appreciation in the last year. In addition, homes in some lower priced neighborhoods have also appreciated better. But, different Denver neighborhoods have appreciated at different rates.
Montclair vs Hilltop and Crestmoor
This Denver Home Price Appreciation Map on the left shows clearly that both Montclair and the Hilltops neighborhood have enjoyed high home appreciation in the previous 12 months. Hontclair does have some stately historic homes mixed with some new contraction “in-fills”. Located just west of Lowry Town Center, it has access to the Lowry amenities.
For the purposes of this map, Hilltop East includes Crestmoor. Both Hilltop and Crestmoor also have lovely older homes along with brand new homes which are generally priced above $2m. This combination also has attracted lots of demand from buyers wanting the local schools and easy access to the popular Cherry Creek Shopping Center neighborhood. Folks can literally walk or bicycle to Cherry Creek
Cherry Creek Neighborhood
Not surprisingly, Cherry Creek neighborhood homes had the highest home price appreciation in the last year. The average home sale increased by 57%. That’s astounding. But, remember that this mix included many of the brand new townhomes and condominiums sold there too. The mix of more expensive, luxury real estate is increasing.
Larger sized townhomes and condo are being build brand-new. Both size and rising construction costs are helping to drive up costs.
Most of the existing small bungalows are now sold only for land value. That way, developers can buy them and build new homes or condominiums. Those are major contributor to rising price appreciation.
Denver Country Club Neighborhood
The stately and historic Denver Country Club neighborhood is just west of Cherry Creek. The fine, older homes there have been in short supply to a hungry real estate market. In fact, many of the remodeled homes priced above $2m have been selling before they are listed in the MLS. Local Realtors have been making private transactions outside the Denver MLS system.
Later, those sales are usually reported to the multiple listing service. But, that is not always the case. Currently out local MLS does not require that such must be marketed though the public MLS system. But, the MLS does require full disclosure to those buyers and Sellers in writing.
Washington Park and Bonnie Brae
The Washington Park neighborhoods have been appreciating a slightly less rate. But, the tend is still clearly up. The east side of Washington Park has always been the most desirable and usually enjoys the highest amount of average home appreciation.
The west side of Washington Park home prices predictably increased less. There has been less “scraping” of smaller homes on that side fo the Park. As a result, these are fewer newly built, and more expensive, homes there now.
Affordable, smaller bunglows are more common on the west side of Washington Park. Some of our clients prefer it because the price per square foot is substantially less for a older bungalow.
This map depicts the Bonnie Brae neighborhood to be included in what it calls Belcaro. Bonnie Brae also expend into what the map shows are Cory-Merrill.
Again, Cory Merrill East shows higher Denver home price appreciation because of all the new development there. More and more of the smaller and older homes there are demolished. Brand new homes spout from that ground. That in turn causes the mix of homes for sale to go up in value.
University Park in South Denver
Homes south of Interstate 25 have tended to hold their value. Or, in some cases, homes have depreciated in the last year.
Platte Park is down 3% in the last 12 months from April. Home prices there surged when the light rail service first began. perhaps now, it is “giving some back”? Even popular University Park with all its new construction show stable home prices with a slight decline of 1%. Wellshire, including Southern Hills” had the same results.
Denver home price appreciation was only stable in University Hills too. Again, more new homes are replacing some of the smaller homes there built right after the Korean War.
You will notice the one exception in the southern end of Denver is Holly Hills. Homes appreciated there a whopping 17%. Why? Perhaps that’s because it is a small enclave of home that actually attend the Cherry Creek School District in unincorporated Arapahoe County.
Overall, homes continue to appreciate in Denver. The big lesson is that not all Denver home price appreciation is the same neighborhood by neighborhood.