Denver home market now 3rd least affordable in the U.S.

New data shows median home price $352k
Posted at 7:43 PM, Dec 23, 2016
and last updated 2016-12-23 21:43:10-05

DENVER -- The mountains, the sunshine and a robust economy -- it's no wonder why Denver is such a hot real estate market.

If you're already a homeowner in metro Denver, you've seen an average of 10 percent growth this year in your home's value.

But, there's a downside.

If you don't yet own a home, newly released data from ATTOM Data Solutions shows Denver proper is now the third lowest in home affordability in the country.

The median home price has skyrocketed to $352,800.

Leading economists say while a slowdown is eventually guaranteed, it's not in the short-term forecast, which is pricing many out of the market.

"I would have loved to come back to Denver. I actually grew up in Denver,” said Megan Frenzel. on her recent search for a home. “But the pricing market did not work."

"Eventually, in four or five years when everything stabilizes and when we have newly-built houses, the housing prices won't be that high," said Dr. Kishore Kulkarni, professor of economics at Metropolitan State University of Denver.

Kulkarni says in the short-term, the housing market will continue its growth pattern.

There is some good news – but only if you're looking to leave Denver.

Nationally, the home affordability index is down about 13 points from this time a year ago.


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