Yes, you read that correctly. For the first time since 2011, central Denver (map) home prices are dropping. We looked at the rolling 12-month median price to eliminate seasonality, and as you can see below, starting July of this year, the market has reversed course.
The 12 months preceding July represent the historic height of central Denver’s housing prices with a median price of $666,500. By the end of August prices dropped 3.2% to $645,000 and held steady through September. This year is a wash for appreciation, considering that prices started in January at $645,000.
We don’t expect to see a long term depreciation trend, barring any significant economic slowdown. The lack of inventory, and the strong demand for Denver homes will continue to support current prices plus or minus a few percentage points. At the same time, we don’t expect to see the meteoric appreciation of years past unless local wages suddenly adjust dramatically.