Denver tops U.S. for home appreciation, Zillow reports

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1 Page 1 of 7 Log in About Us Sponsors Door 2 Door People In The News Contact Denver tops U.S. for home appreciation, Zillow reports Posted by John Rebchook December 30, Comments Tweet Like 63 Share/Bookmark Zillow releases November, year-end report. Denver home prices rising faster than anywhere in the U.S., Zillow reports. Denver rents also on a tear. This home in Arvada is listed at $325,000, close to the median price of a home in the Denver area, according to Zillow. For more information on this house, contact Tamara K. Bray at 8z Real Estate.

2 Page 2 of 7 In November, Denver home values grew by 15.5 percent, marketing the 10 th consecutive month Denver has booked the fastest appreciation in the U.S., according to a Zillow report released today. And for the year, Denver-area home values rose by 12.8 percent more than three times the national average in 2015, according to a report released today by Zillow. Homes in the Denver area gained $5.8 billion in value, for a total valuation of $347 billion, according to Zillow. Nationally, the value of the entire housing stock grew by 4.1 percent. The Zillow data shows that the increase in the cost of housing continues at a brisk pace, said economist Patty Silverstein, principal of Development Research Partners. While the increase in home values is terrific for our area homeowners, prices are a challenge for first-time home buyers and those just entering the metro Denver market, said Silverstein, who is the chief economist for the Metro Denver Economic Development Corp. While I expect home prices and rents to continue to move upwards in 2016, the rate of increase should slow as more multifamily product becomes available, Silverstein added. Renters in the Denver area also paid $5.8 billion in Despite Denver s home appreciation and rent increases, it was in the middle of the pack by those metrics. For total value of homes, Denver ranked 17 th out of 35 metropolitan statistical areas analyzed by Zillow. Homes in the Los Angeles area were No. 1, with a total value of $2.4 trillion, accounting for almost 10 percent of the $28.5 million for all homes in the U.S. Similarly, as far as total rents, Denver ranked 18 th. In November, home values in Denver rose 15.5 percent from November 2014 to $318,000. By that measure, Denver was the 10 th most expensive MSA of the 35 major markets tracked by Zillow. Rents in November rose 9.7 percent to $1,952, according to Zillow. However, local surveys have shown average rents in the Denver area much lower. For example, appraiser Cary Bruteig put the average monthly rent in the Denver area at the end of the third quarter at $1,312, more than $600 less per month than reported by Zillow. Nationwide, the value of all homes in the U.S. grew $1.1 trillion, according to Zillow. The value of all homes is projected at $28.5 trillion. In 2014, homes grew in value by 6 percent, substantially more than the 4.1 percent booked this year. The total value of all homes has regained $5.3 trillion since hitting its lowest point during the housing bust in December 2011, according to Zillow.

3 Page 3 of 7 However, that is still $782 billion below the bubble peak value of $29.2 trillion, reached in October Still, the dollar amount itself underscores the significance of housing to the U.S. economy, according to Zillow. In the third quarter of 2015, the U.S. gross domestic product was $18.1 trillion, $10 trillion less than the total value of the housing stock. This reminds us of the large role housing plays in the overall economy, said Zillow Chief Economist Svenja Gudell. Total home value growth slowed this year, but there was still a significant increase in overall value, and many markets are more valuable than they ve ever been, Gudell added. At the same time, more renter households and rising rents combined to set new records in rental spending in 2015, Gudell said. Americans are spending a lot of money on housing, and that will make affordability an important issue next year. Housing value isn t distributed equally across the country. California is home to about 12 percent of the U.S. population, but the state accounts for nearly a quarter of the country s total home value, driven by highly valued markets like Los Angeles and San Francisco. Have a story idea or real estate tip? Contact John Rebchook at [email protected]. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal. Tweet Like Share 63 1 Related Posts: Zillow: Denver home prices, rents surge Rents rising in metro Denver Heavy hitters close more than $2.1 billion in deals Apartment rents rise Case-Shiller: Denver home prices up 7.5% John Rebchook John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he

4 Page 4 of 7 wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for GlobeSt.com, covering commercial real estate for the Internet publication. More Posts - Website Share this: Facebook 63 Like this: Like Be the first to like this. Related Zillow report backs buying, not renting Zillow: Denver homes appreciation highest in U.S. Zillow: Denver out-performs nation by some metrics 3 Comments Categories : Apartments, Denver Housing, News, Real Estate Tags : Apartments, Denver Home Prices, Real Estate News, Rents, Zillow Previous Post Next Post Leave a Reply 3 Replies 3 Comments 0 Tweets 0 Facebook 0 Pingbacks Last reply was 1 week ago

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