Zillow reports that Denver's home values in October rose 6.5 percent, less than the national annual increase of 7 percent for the first time in a decade.
Builders have concentrated much of their projects on high-end homes, contributing to a slower appreciation rate, 5.4 percent. However, demand continues to greatly overshadow supply in the bottom third of the market, per The Denver Post. Despite years of strong gains in the lowest-priced tier of homes, appreciation is still strong at 9.5 percent and the available inventory of homes for sale is expected to remain constricted.
After running hot for several years, metro Denver’s housing market should turn in a more middling performance next year — but that won’t necessarily be a bad thing. “Our expectation is that 2018 may indeed be the year that home prices in metro Denver increase at about the same 5 percentish rate as the nation,” said Patty Silverstein, chief economist with Development Research Partners in Littleton.
