With 2016 upon us, home buyers and owners want to know which way prices are headed. In Denver metro neighborhoods, will valuations continue going up or have they peaked and are on their way down? To read the tea leaves, you can check out the latest jobs reports, compare other markets, or read economists’ predictions. But insights can also be found in the most unusual places (courtesy of Realtor.com).
We’ve rounded up seven surprising indicators of change in home prices:
When gas prices fall, home prices go up and sell faster! That’s because spending less at the pump increases consumers’ confidence as they have more disposable income. Plus it cuts the listing broker’s travel expenses to properties, so they can market more aggressively and will have more showings. Studies show for every $1 decrease in gas prices, home prices spike by roughly $4,000!
Trader Joe’s and Whole Foods
The two great foodie superstores are the affordable gourmet market Trader Joe’s and the pricey, environmentally-conscious Whole Foods. Living near either market, your home will significantly trump the national average home value. However, homes near Trader Joe’s are actually worth 5% more than those by Whole Foods (according to RealtyTrac).
Living in walking distance to the big game is a definite property score. Studies show a residential housing unit that’s just one mile closer to a professional sports facility will go up by $793. But within a four mile radius, prices remain the same high level.
Since Colorado opened doors for recreational sales in January 2014, housing prices have climbed by 20.4% (compared to the 15.2% across the nation). The legalization has triggered people to relocate to Denver, which may have pushed up real estate values.
Global warming affects not only nature, but also our the real estate market. The National Association of Realtors® discovered over the past four years and found when temperature rose by 3 degrees, home prices did not significantly gain. Colorado has some climate change concerns, as you can read from this article in the Boulder Weekly.
Living near a freeway can be a boost to home values. A case study done with an Arizona highway showed average sales prices appreciated for properties within 5 miles was higher than the whole metropolitan area. Of course single-family homes that were too close to the freeway (within 0.5 miles) did not have a higher valuations.
Naturally neighborhoods with more stately, mature trees have an additional charm and usually more expensive homes. A recent study found properties on these kinds of tree-lined streets fetched an average $7,130 more.
Are you planning to buy or sell in 2016?
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Windermere Metro Denver Real Estate