Denver condo prices drop, as house prices keep edging up

There are still a few deals on the market.
3 min. read
The interior atrium of a Belcaro condo building. Feb. 8, 2024.
Kevin J. Beaty/Denverite

The median price of a Denver area house has risen to $660,000, a few thousand dollars higher than they were this time last year.

The median price of condos and other attached properties, in contrast, has dropped more than $15,000 to $407,250.

That's according to the latest Market Trends Report from the Denver Metro Association of Realtors.

The report takes into account data from Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson and Park counties.

Why are condos selling for less?

In short, there are too many expensive fees involved and the value of these properties is not increasing as quickly as stand-alone houses.

"These properties experienced a three-pronged financial hit over the last year due to rising HOA fees, association assessments and property taxes," wrote DMAR market trends committee chair Libby Levinson-Katz in the report.

"Homeowners in the condo market are paying more to hold onto their properties," she added. "As a result, by and large, they are not appreciating as well as they once did due to buyer hesitancy to take on the financial burden."

How are mortgage interest rates doing?

Mortgage interest rates, still hovering around a hefty 7 percent, have not deterred all sellers from entering the market.

The assumption among realtors earlier in the year was that the high mortgage rates would be cut by now, and more people would enter the housing market. But the Federal Reserve has kept those rates high.

Still, people are buying and selling homes. The number of active listings at the end of the month was up more than 75 percent from this time last year.

"Opportunities do exist in the Denver market for persistent buyers," Levinson-Katz said.

With inventory up, buyers have more homes to choose from than they have in recent years.

Levinson-Katz is cautioning sellers to prepare their home for sale instead of rushing to put their properties on the market, as buyers have more room to look for deals.

"Consumers have become accustomed to transacting real estate quickly throughout the last few years," she noted. "As a result, sellers are more willing to evaluate a price correction or negotiate with buyers at the onset for a quick sale."

There are some stand-alone homes you can get for the price of a condo. Like this one ...

What's considered a bargain now in Denver?

Well, you could spend $415,000 on a 614-square-foot, two-bedroom, one-bathroom box in Whittier, near the City Park Golf Course. It looks about the size of a garage.

"This unique property boasts two bedrooms and one bathroom, upgraded kitchen with granite countertops and new backsplash, and newer tile flooring," according to the posting. "Outside you will find a shed for extra storage."

2118 E 25th Avenue
Kevin J. Beaty/Denverite

Even better: the location.

The property has been sitting on Zillow for 33 days. Sure, it's the size of a studio. But hey, at least there aren't HOA fees.

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