Homeowners want bigger lots and new construction without leaving city life
Please be safe. The coronavirus is dominating all our lives. We’re continuing our coverage of the market, even as most of us have rightly slowed down and focused on family and social safety.
One trend I saw emerging in the early 2020 market — before the coronavirus disruption — was a growing homebuyer demand for homes on larger lots closer to downtown Denver.
This means that classic Denver neighborhoods such as Washington Park were getting a lot of attention. But because this neighborhood has experienced sustained demand for years, it doesn’t have much available inventory.
So this means those buyers looking for 8,000 to 10,000-square-foot lots in central Denver are expanding their search to nearby neighborhoods such as Observatory Park, which is just south of Washington Park across Highway 25.
In the past, buyers with a desire for more space would look to the suburbs, places such as Cherry Hills Village, Centennial and Greenwood Village, where they could get more home, and lot, for their buck. I see a shift towards those people wanting to stay closer to central Denver.
Observatory Park on the up
Prices for new-construction homes on 6,250-square-foot lots in East Washington Park go for $2.5 – $3.5 million, which pricing for similar homes in Observatory Park is approaching.
While Observatory Park doesn’t have much inventory to offer, space does still exist.
For example, one home I recently listed at 2591 South Columbine Street, while not representing new construction (built in 2017), offers a six-bed, seven-bath space on a 7,500-square-foot lot just blocks from the University of Denver and tons of restaurants and shopping.
A quieter area than Washington Park, Observatory Park attracts buyers with its proximity to downtown and cozy neighborhoods.
Comparing Observatory Park + Washington Park
The below stats are for single-family homes in East Washington Park, which has bigger lots and more of a neighborhood feel than west Wash Park and is more comparable to the neighborhood demand we’re discussing. East Wash Park:
- 2016: $1,079,892 average sold price, $537 per above-ground square foot
- 2017: $1,089,685 average sold price, $ 543 per above-ground square foot
- 2018: $1,239,025 average sold price, $621 per above-ground square foot
- 2019: $1,348,631 average sold price, $602 per above-ground square foot
- New Construction Stats (homes built after 2015): 13 homes sold, $2,072,307 average price, $612 per above-ground square foot
- 2016 – $1,005,245 average sold price, $385 per above-ground square foot
- 2017 – $1,170,483 average sold price, $423 per above-ground square foot
- 2018 – $1,313,834 average sold price, $436 per above-ground square foot
- 2019 – $1,142,263 average sold price, $479 per above-ground square foot
- New Construction Stats (homes built after 2015):17 homes sold, $2,139,816 average price, $543 per above-ground square foot
Interested in finding a large-lot home in a central Denver neighborhood, reach out for an exclusive insight into availability: firstname.lastname@example.org