Denver suburbs home prices are still appreciating. Still, some neighborhoods outperformed others over the 12 month period ending July 1, 2017.
The general rule is that luxury homes for sale priced over $1m tended to under-preform lower priced resale homes. Also, homes further from the city center tended to to enjoy less home price appreciation. And, home prices in neighborhoods priced below $500,000 generally increased the most.
New headlines abound about the continuing “hot Denver real estate market“. Fact is, all real estate is local. So, Denver suburbs home prices appreciation varies from one neighborhood to the next. Sometimes, a highly appreciating neighborhood is located right next door to a neighborhood that that not had price appreciation. Worse, some Denver suburbs home prices have actually declined slightly in average selling prices.
Luxury Home Prices
Denver city luxury home prices have actually appreciated substantially. That’s because much of the Denver luxury real estate is brand new construction on “in-fill” lots in posh neighborhoods like Cherry Creek. Fewer new luxury homes are built in the suburbs. And, when they are built, they are often custom homes commissioned by the end-user. So, they are often not reported in the Denver MLS. Therefore, they are not included these statistics for Cherry Hills Village and Greenwood Village.
As a result, luxury home price appreciation is flat to actually slightly negative in Cherry Hills Village. Again, these reflect mainly the lack of appreciation of older, less desirable homes. The new construction there is building homes that would sell for more money if they were reported to the MLS system.
The same is true for Greenwood Village. For example, The Preserve is Greenwood Village sells lots that are reported int he MLS statistics. But, it does not report the eventual construction costs for new homes built on those lots. Again, older homes are not as valuable as new construction homes.
So, home buyers looking for older luxury homes in established neighborhoods will not be paying exorbitantly for price appreciation. Conversely, those older homes may not appreciate as much as the newer homes may appreciate in future.
Highlands Ranch Prices
Highlands Ranch is Denver’s most desirable are for home buyers relocating from another state. Denver relocation home buyers comprise as much as half of the population in Highlands Ranch. In addition, new homes there are now priced generally in excess of $1m. They are located in BackCountry. That, of course, skews the average prices upward. But, it is also lifting the prices of existing homes in Highlands Ranch.
Highlands Ranch includes all communities shown on the map west of Lone Tree. Different sections appreciated at different rates.
Homes in nearby Lone Tree appreciated slightly less than homes in Highlands Ranch. The except is Heritage Hills. That’s because the new homes are reported the statistics provided by the Denver MLS.
Suburban Centennial Communities
These Centennial neighborhoods home prices have appreciated at varying degrees in the last 12 months. Most of these communities attend Littleton Public Schools. Homestead, Walnut Hills and Willow Creek attend the renown Cherry Creek schools.
The communities are all conveniently located near the Denver Tech Center, Southglenn Shopping Mall and Park Meadows Mall. The light rail to downtown and Denver International Airport stops on the east side communities along Interstate 25. Commuters to downtown should expect about 30 minutes by driving. Also, commuting downtown takes about 30 minutes from the light rail stops.
Denver suburbs home prices have continued to appreciate at near record levels. Case-Shiller recognizes Denver as in the top 3 real estate market nationally for home price appreciation. So far, the trend continues upward as demand increases and the supply of homes for sale remains extremely low.