Investing in Denver Real Estate
Is the Denver Market a Good Long-term Investment?

All real estate markets are local... looking beyond the immediate horizon - the Denver real estate market has proven itself to be a good long-term investment and a safe, secure way to build long-term wealth.  Look at the stats below and read my commentary at the bottom for a little historical perspective of home appreciation rates across the US.

Click here for Denver Metro Area MLS Trends & Statistics.

The Six Benefits of Owning or Investing in Denver Real Estate

1.  Tax Deductions
2.  Appreciation
3.  Equity
4.  Borrowing Power
5.  Stability
6.  Freedom

• Over the past 40 years, home values have risen 5% annually on average.

• The average homeowner's net worth is nearly 46 times that of a renter!

• Interest rates are still at historic lows - 3.5% (30 year fixed with 3.5% down)

Change in FHFA State House Price Indexes
(Seasonally Adjusted, Purchase-Only Index, 2012 Q3)

Region	Rank	1 Quarter	1 Year	5 Years	Since 1991Q1
USA		1.08	4.04	-15.37	87.86
AZ	1	5.37	20.06	-36.72	93.49
DC	2	6.99	15.53	10.68	284.36
ID	3	2.32	9.57	-23.22	101.65
ND	4	3.33	9.23	21.03	152.39
NV	5	4.23	8.66	-50.86	22.78
UT	6	1.91	8.63	-19.53	159.15
FL	7	2.16	7.86	-35.92	84.55
CA	8	1.98	7.24	-35.54	62.25
MI	9	1.90	7.02	-16.16	52.30
CO	10	2.13	6.57	-0.38	177.90
DE	11	5.75	6.03	-17.37	83.70
GA	12	1.65	5.98	-21.20	56.11
OR	13	2.51	5.64	-22.17	161.97
TX	14	0.94	5.58	4.33	98.27
HI	15	0.88	5.50	-14.26	83.73
MT	16	1.46	4.84	-5.92	197.50
SD	17	1.42	4.80	5.38	132.67
MN	18	1.88	4.67	-15.60	109.79
AR	19	0.15	4.56	-4.92	85.83
OK	20	1.27	4.18	1.40	96.74
WY	21	2.10	4.00	-3.10	196.56
MS	22	1.62	3.79	-7.25	78.25
WA	23	1.80	3.71	-22.68	117.51
LA	24	1.73	3.65	-1.34	132.81
SC	25	0.90	3.47	-10.35	80.75
OH	26	0.90	3.44	-9.73	55.55
KS	27	1.34	2.97	-3.29	93.04
NE	28	0.21	2.87	-1.00	97.21
VT	29	1.46	2.80	-3.32	112.16
AL	30	-1.51	2.72	-11.21	78.13
VA	31	1.08	2.67	-13.17	114.18
IA	32	1.00	2.57	-0.30	99.97
KY	33	-0.16	2.53	-1.25	89.33
MO	34	0.09	2.07	-10.95	82.87
MD	35	-1.93	1.78	-22.06	106.90
TN	36	0.09	1.77	-8.71	86.00
WV	37	0.79	1.76	-2.07	90.08
NC	38	0.89	1.52	-11.04	80.27
IN	39	0.26	1.48	-5.29	60.28
NM	39	-0.26	1.48	-13.75	108.99
MA	41	0.72	0.74	-8.90	117.35
AK	42	-0.24	0.70	1.34	127.13
PA	43	0.27	0.18	-7.08	87.28
WI	44	-0.34	0.08	-11.49	101.87
CT	44	2.26	0.08	-15.27	67.21
IL	46	0.51	-0.28	-18.33	71.81
NY	47	-0.30	-0.36	-7.46	103.94
NJ	48	-0.56	-1.07	-17.78	109.76
NH	49	-1.64	-1.49	-17.35	89.92
RI	50	-0.87	-1.56	-21.47	77.01
ME	51	-2.04	-2.58	-9.95	99.25

As of September 2012, Colorado was ranked #10 in home appreciation with a modest gain of 6.57% in the previous 12-month period.  In the last 5-years, prices have remained relatively flat, but what's really staggering is to see the 177.9% jump in Colorado home appreciation since 1991. Simply put, if you would have purchased a home in Colorado for $100,000 in 1991, it would be worth $277,000 today!

 

If you would like to sit down for coffee and discuss the Arvada, Colorado Real Estate Market, just call me anytime at 303-520-3179.  Anthony Rael, RE/MAX Alliance offers professional & trustworthy real estate services to buyers & sellers throughout the Denver metro area including Arvada, Brighton, Broomfield, Denver, Golden, Highland/Sloan's Lake, Highlands Ranch, Lakewood, Littleton, Louisville, Longmont, Thornton, Westminster, Wheat Ridge, Adams County, Denver County, Douglas County & Jefferson County.

Leverage my life-long knowledge of the Denver Metro area - from homes, condos, lofts or investment properties, new homes builders, schools & local amenities to reliable & trustworthy business partners like mortgage brokers & home contractors to maximize your investment, secure your future and realize the home of your dreams.