Denver Real Estate Market History

THE EIGHTIES: In the early 1980's, Denver was enjoying a sudden wave of prosperity and things were going gangbusters for the oil and gas industry here. Not too much later, this sector deflated in a hurry, with a strong negative impact on the city. By the late 1980's much of the country was heading toward difficult economic times with Denver among the cities leading the pack. Many here lost their jobs and couldn't find suitable employment. Real estate values plummeted and people were faced with a situation of "negative equity" -- owing more on their house than it was now worth. In frustration, some just packed up and left the city, abandoning their homes. HUD officials found themselves with thousands of Colorado foreclosure properties on their hands and needed to dispose of this inventory. With so much real estate on the market, prices dropped even further. When people joked that you could buy condos with a credit card, it was truth in jest. Small condo units could be bought in some areas for $10,000 to $15,000.

THE NINETIES: As Denver worked its way out of its economic problems, people around the country began to take note of the real estate values here. Californians came by the thousands, finding the nice profit they'd made selling an average home on the West Coast would buy what was practically a mansion here in Colorado. New Yorkers, Texans, people from the mid-west streamed here, finding not only good real estate values, but "quality of life" as well. Meanwhile, state and city officials had been busy trying to boost Colorado's sagging fortunes by attracting new businesses to the area. They came too, many with a corps of relocating employees. By 1992, the boom had begun. A newly listed house might sell within hours, with buyers rushing their decisions lest someone else get ahead of them. As home sales picked up dramatically, builders noted the opportunity and new home developments sprang up everywhere. The newer homes were bigger and more expensive than what had been typically built before, and this further pushed up "average" home prices.

RIGHT NOW: If you're moving to Denver now, you'll find that the incredible bargains of the 90's (especially the early 90's) are long gone. While the "median" price of a single family resale home may be upward toward $220,000, however, there is still considerable inventory in the $150,000 to $200,000 range. There's even more to choose from if you're looking in the over $200,000 and over $300,000 categories: new luxury home developments abound, there has been much "in-fill" building and renovation in some of Denver's older exclusive neighborhoods, and "prairie castles" dot the rural perimeter of the metro area. The variety of homes available is much greater than it was just ten years ago. There's a wide variety of listings in all price ranges, in almost every area.

THE FUTURE: The outlook for Denver's economy and real estate market continue to look favorable. Household earnings here remain significantly above the national average. People who've purchased houses here have seen considerable appreciation on their investments, and while no upward trend lasts forever, this one looks like it's still not over.