Now in the final weeks of 2018 I want to take a moment to reflect on the downtown market not only in the context of the calendar year but how this year compares to those previous. Additionally, let's take a glimpse at 2019 as it's poised to shake-up the downtown segment.
A Local Market
In terms of size, the downtown residential market, encompassing the 80202 zip code, has largely remained unchanged over the past eight years. The two newest condominium buildings, SPIRE and The Four Seasons Private Residences, were completed in 2009 and 2010, respectively. While it took a number of years to sell-out both developments, the number of new units delivered has not changed in 80202 since their completion.
As we look at market performance since 2013, results are predictably familiar with a steady appreciation over the five year period.
Downtown Market Appreciation
Number of sales in 80202 by year along with median sales prices, according to the MLS.
- 2013 | 399 Sales | $391,000
- 2014 | 403 Sales | $410,000
- 2015 | 405 Sales | $455,000
- 2016 | 378 Sales | $468,000
- 2017 | 396 Sales | $506,125
As of December 4, 2018, there have been 351 sales with a median sales price of $517,500 in 80202. For context, home prices in downtown Denver fit squarely into the city's largest pricing demographics as illustrated in a previous post found here.
Condominiums vs. Apartments
Denver's adversity to condominiums, largely due to Colorado's Construction Defect legislation, has paved the way for a proliferation of apartment construction as developers capitalize on a solid economy as well as high demand for downtown living. The disparity is astonishing considering Denver's evolution into a diversified commercial centre and residential playground.
“Since 2010 not a single condominium was developed in 80202; however, since 2013 there have been more than 4,000 apartment dwellings delivered.”
New Apartments by Neighborhood
- Riverfront Park | 995 Residences
- Union Station | 2,576 Residences
- LoDo | 47 Residences
- Central Business District | 713 Residences
The Coloradan, Denver's newest condominium development, is scheduled to deliver during the first half of 2019. With 334 residences, the sale of the building will alone account for 84% of the total number of sales in 80202 in 2017. Another metric to consider is if the re-sale market continues to perform as it has for the past five years, 80202 will nearly double its condominium sales per annum in 2019.
Not only is The Coloradan going to boost the number of sales in Denver's downtown zip code but the overall valuation of the Denver market will increase, as well. The Four Seasons Private Residences have long been considered the pinnacle of residential living downtown and with it's newness, quality of construction and preeminent location, The Coloradan will slot firmly into the second position.
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