Prices Rise for 2nd Year in a Row

greg
By: Greg Johnson

The average price of Central Denver apartment transactions rose to
a record $153,000 per unit this year. That figure excludes the sale of
newly-constructed buildings, and is a 20% increase over last year’s
average of $127,000/unit.

As prices continued to skyrocket this year, the overall sales volume
through November declined from 60 sales in 2014 to just 38 sales this
year. We reviewed the full list of sales, and reported the statistics for
10-100 unit apartment buildings in the Central Denver neighborhoods
between Broadway and Colorado Boulevard.

Through November of this year, we’ve seen six sales of older
buildings over $200,000 per unit, plus two more sales of newly-constructed
multifamily properties. In 2014, there were no sales of older buildings
over that price, and just five new buildings.

Looking for bargains below $100,000 per door? There were just
two sales this year, and both of them had a large number of studio apartments.
Many investors are left wondering when will the market reach its peak.
Declining transaction volume is one possible indicator that we are
nearing the top. Rising interest rates, new construction activity, and job
growth are all factors to watch closely in 2016.

graphssd

Source: CoStar