In October Edgewater, Lakewood and Wheat Ridge witnessed an average sales price explosion of over 22 percent, year-over-year. The gains were so steep that total sales volume was up nearly 5 percent even though the number of transactions was down over 14 percent. Unsurprisingly, it took nearly a week less time to sell a house this October than last.
While these three municipalities continue to struggle with new inventory, it is less-so of a problem than with the Denver metro area at large. Inventory was down just under 7 percent in Edgewater, Lakewood and Wheat Ridge year-over-year for October while Denver metro was down nearly 18 percent.
Interest rates in the mid-3 percent range is a large part of what’s driving demand across the country. If the economy stays strong and inflation continues to rise, experts say we may see rates begin to rise by summer 2022, but if that doesn’t happen, it will at least be delayed until the mid-term elections in November.
The pandemic created a monster demand for more space and more distance between neighbors. The housing inventory in Wheat Ridge and Lakewood is a prime target for these buyers. In Edgewater, if you consider the new Edgewater Marketplace coupled with the shops and eateries lining both 25th Avenue and Sheridan Boulevard, along with Sloan’s Lake literally across the street, what you’ve got is a fully self-contained living/shopping/dining/recreation experience with little need for a car. While the homes and lot sizes in Edgewater are generally smaller than in Lakewood and Wheat Ridge, the pedestrian-friendly environment it offers will always be a highly coveted buyer desire.
Continued job growth in Denver metro has also been a key factor in continued and increasing buyer demand throughout the metro area. Preliminary results for September show unemployment at 4.8 percent, down from 5.5 percent in August.
Low inventory, low interest rates, continued job growth, and a desire for more space and/or walkable amenities will insure continued high buyer demand, and with it increasing home prices, for Edgewater, Lakewood and Wheat Ridge for the foreseeable future.
Jenny Apel is the owner of Nostalgic Homes and can be reached at 303-455-5535.