Jefferson County home prices rise as homebuyers move away from Denver
Double-digit home price hikes were common in the Denver metro area over the past four quarters, but when it came to registering the highest appreciation rates, Jefferson County homeowners were the undisputed leaders, according to a study by Zillow.
The Seattle-based housing search engine and research firm surveyed 50 cities and subway neighborhoods in Denver, measuring how home values ââchanged between June 30, 2020, when markets reopened after a foreclosure, and June 30 of this year. Of this group, 10 of the 12 locations with the highest appreciation rates were in Jefferson County, and the other two were in Douglas County.
âAcross the country, we’ve seen buyers turn to larger, more affordable homes. Especially since it is less important to live close to the office with the explosion of remote working, buyers in the Denver area are more often looking outside the downtown area, âsaid Cory Hopkins, editor. senior manager at Zillow Research.
Home values ââin many communities in Jeffco were already above the metropolitan average, reflecting the premium people have long placed on living closer to the mountains. As the pandemic caused homebuyers to rush to find homes with more space, the county with the largest average lot size in the metro area has once again benefited.
“The pandemic may have caused more people to consider the area because it strikes a good balance with homes generally larger than in Denver, Arapahoe and Adams counties, and more affordable than in Douglas County,” he said. said Hopkins.
Where the biggest gains came from
The West Pleasant View neighborhood, which is east of the Golden Cemetery and has Camp George West and Jeffco Fairgrounds on its eastern border, experienced the strongest growth in home values ââat 28.5% of the 50 locations surveyed. , according to Zillow.
The finalists, with one exception, were all in Jefferson County. Edgewater, Wheat Ridge, Columbine, Conifer, Applewood, Arvada and Morrison recorded house price increases of around 22%. Not far behind were Golden, Lakewood, Evergreen and Ken Caryl, also in Jefferson County.
Several new construction projects in Candelas, a planned community, likely contributed to Arvada’s appreciation, according to Anthony Rael, a RE / MAX Alliance agent in Arvada. The lot sizes in the community are quite average, but the houses themselves are large. And buyers could customize homes to include a more dedicated remote workspace, which was much appreciated during the pandemic.
Larkspur in Douglas County was the only non-Jeffco neighborhood to make the Denver Metro Top 10 with a 22.6% gain on homes valued at $ 839,651 in June 2020. It ranked third after West Pleasant View and Edgewater.
Denver didn’t do as well as the suburbs, with an annual gain of 13.3% on a typical home value of $ 543,544, according to Zillow. This ranked 44th of the 50 neighborhoods and cities included in the survey. But the price gains varied considerably from neighborhood to neighborhood.
Sun Valley, located just south of Empower Field in Mile High, saw the largest price increase in Denver at 19.8% using a June 2020-based price of $ 506,050, according to the Zillow survey.
Athmar Park, Harvey Park, Ruby Hill, Barnum West and Mar Lee saw home value gains ranging from 16.7% to 18.7%, making Southwest Denver a relatively strong appreciation area. last year. Rosedale, in south-central Denver, saw house prices rise 17.4%, while prices for Clayton and Elyria Swansea homes, located north of the central business district, both rose 17.4%. , 1%.
No Denver neighborhood has lost its home value, but 10 have seen single-digit gains, according to Zillow. They included Five Points, Cherry Creek, Windsor, Capitol Hill, Cheesman Park, North Capitol Hill, Civic Center, Auraria, the Central Business District, and Union Station.
This in part reflects a higher concentration of condos, which fell out of favor during the pandemic due to their density and the closure of nearby bars, restaurants and entertainment venues, which made these areas less attractive.
Different ways to measure appreciation
Matt Leprino, CEO of real estate brokerage firm Remingo, said the home price appreciation numbers he tracks, which are based on sales, don’t match what Zillow is showing. Denver County had a 29% appreciation rate for single-family or âfreestandingâ homes compared to 23% for Jefferson County in the second quarter.
Denver is not a latecomer, but a leader, according to Leprino. So why the difference?
Zillow has an appraisal tool that estimates a value for each home in a neighborhood, which it can use to determine how home values ââin a specific neighborhood have changed over time. But another approach is to look at the mix of homes sold in a given period and compare it to the closing prices of a previous period.
Another study from Orchard, a real estate company that helps buyers make cash offers on the homes they want, used home sales figures and found much higher appreciation rates than Zillow, in part because luxury homes have become a bigger part of the home mix. sold this year than last year.
âWe are seeing greater price appreciation all over Denver in the big houses. The selling price of homes over 2,500 square feet has increased 25% from 2020 to 2021, compared to 19% for homes 1,500 square feet and under, âsaid Trevor Patch, senior director of data science at Orchard. “Most homes this size are found outside of downtown Denver and Boulder, which is why these suburbs are seeing such skyrocketing prices.”
Denver’s 80218 zip code, which includes parts of the Denver Country Club neighborhood all the way to City Park West, saw the largest increase in the median price of a home sold at 52% – from $ 755,000 in the second quarter of 2020 to $ 1.1 million in the second quarter of 2021.
Postal code 80124, which includes Lone Tree and Heritage Hills, saw a 48% increase in the median price of a home sold, from $ 615,000 to $ 907,500. Other postal codes with house price appreciation rates exceeding 40% were Evergreen’s 80439, Foxton’s 80433, Northeast Boulder’s 80301 and Greenwood Village’s 80121, according to the Orchard study. .
Many of the largest relative increases in median prices have occurred in the southern and western suburbs of metro Denver. The east side of the metropolitan area, which is generally not as popular, has seen more action due to the availability of more affordable new construction. Aurora and Parker have seen more deals than other parts of the region from afar, according to Orchard’s investigation.
Patch predicts that the trips made by people to the fringes of the metropolitan area and to the foothills are likely to persist even after normalcy has returned.
âI have seen situations where people have moved from the city to places like Berthoud or Evergreen and come to the city to work one or two days a week when needed. People made these decisions for the long term, not just for the months after the start of the pandemic, âhe said.
Orchard described the entire Denver metro market as “ruthless” in the second quarter, with half of homes in 85 of 95 zip codes surveyed spending four days or less in the market.
In Broomfield 80023, Elbert County 80107, and Douglas County 80108, the median days a house spent in the market dropped from 21, 20, and 19 days in Q2 2020 to just 4 days, respectively. second quarter 2021.
But the Denver metro real estate market showed signs of slowing down in July, which was outside the timeframe Zillow and Orchard studied. Inventories rose sharply after depressed levels and monthly increases in home prices remained stable.