Another sign Denver homes may be really unaffordable: very few distressed sales
Buying a distressed home, like one facing foreclosure or in poor condition, isn’t just a recipe for a hilarious movie starring Tom Hanks. Taken at a metro level, it’s also a sign of the overall health of a housing market.
Denver had a very low proportion of distressed sales during July 2016, according to a report from Clear Capital: only 5.5 percent. The national average is 14.5 percent. That could just mean that the city is healthy. Or…
“This could be a signal that affordability is continuing to plummet,” Alex Villacorta told Clear Capital. “This, coupled with an observed rapid increase in price and a potential uptick in interest rates in the near future, may spell trouble for the [West].”
Basically, there are very few inexpensive fixer-uppers for first-time homebuyers trying to enter the market.
And Denver’s not alone in this. Top performing housing markets across the country have seen levels of distressed properties decrease much faster than the national average. And many of best-performing housing markets are in the West.
| Metro | Quarterly price growth | ||
| Tampa, FL — St. Petersburg, FL — Clearwater, FL | 2.50% | ||
| Orlando, FL | 2.00% | ||
| Seattle, WA — Tacoma, WA — Bellevue, WA | 1.90% | ||
| Dallas, TX — Fort Worth, TX — Arlington, TX | 1.80% | ||
| Cleveland, OH — Elyria, OH — Mentor, OH | 1.70% | ||
| San Jose, CA — Sunnyvale, CA — Santa Clara, CA | 1.70% | ||
| San Diego, CA — Carlsbad, CA — San Marcos, CA | 1.60% | ||
| Honolulu, HI | 1.60% | ||
| Jacksonville, FL | 1.60% | ||
| Riverside, CA — San Bernardino, CA — Ontario, CA | 1.50% | ||
| Las Vegas, NV — Paradise, NV | 1.50% | ||
| Denver, CO — Aurora, CO | 1.50% | ||
| Miami, FL — Ft. Lauderdale, FL — Miami Beach, FL | 1.50% | ||
| Sacramento, CA — Arden, CA — Roseville, CA | 1.50% | ||
| Fresno, CA | 1.40% | ||
Source: Clear Capital
More distressing (ha) still — among the top housing markets, Denver’s proportion of distressed sales was the third lowest:
The national average is 14.5 percent.
At least Denver had higher proportion of distressed properties than San Jose. That metro area includes Palo Alto, a city so unaffordable that Slate called it a “parable for the failures of the affordable housing movement in this country.”
Denver switched to LED streetlights in Berkeley and the locals barely noticed
We don’t report a lot of mayoral endorsements, but this one is from Hillary Clinton
10,000 tiny paintings in the Denver Art Museum’s latest artist spotlight exhibit will be given away
Firefighters, plumbers and childcare workers are among those struggling to buy homes in Denver
Studying one Denver food pantry, CU Denver students learn about the complexities of food insecurity
Denver is looking at allowing drinking in the streets — with rules, of course
Dozens gather in Cole to learn and talk about displacement — and displacement data
Here’s why you don’t see many fire escapes in Denver
Immigration advocates are weighing whether Denver can support overflow from the southern border
Denver: don’t forget you need to vote on voting on the Olympics
Giellis and Hancock launch into runoff campaigns backed by former rivals and former mayors
Colorado Senate Watch 2020: Dan Baer wants to tackle corporate money in politics
Free full-day kindergarten is coming. Here’s what Colorado parents need to know.
As tiny homes begin the move to Globeville, one resident reflects on their value while new neighbors worry
Denver westsiders can now get a city-funded boost to build wee homes next to their big homes
Denver just surpassed 500 high-rise buildings
Lisa Calderón and Penfield Tate are now friends, not foes, of Jamie Giellis and her campaign to be Denver’s mayor
