Each week I will provide a Neighborhood Specific Market Analysis starting with close in Denver neighborhoods and expanding to neighborhoods requested by followers. Denver neighborhood boundaries will be defined by the City and County of Denver Statistical Neighborhoods map. However, this neighborhood analysis looks at one of Denver’s unique neighborhoods know as Bonnie Brae. The City and County of Denver’s Statistical Neighborhood map combines the Bonnie Brae and Belcaro neighborhoods within the same neighborhood boundary. This analysis is for Bonnie Brae only and will be a year over year analysis with an additional look at the seasonal trends. Raw statistical numbers within the analysis need to be somewhat tempered as a contributing factor to markets increasing is the amount of capital infused into the fix and flip properties as well as new construction. Due to the high land values within the Bonnie Brae neighborhood the amount of capital going into new construction keeps increasing and the corresponding selling prices needed for a profit have also increase. The Bonnie Brae neighborhood has many luxury homes and the sale of one or two higher price multi-million-dollar homes can skew the numbers when doing a year over year analysis. These factors can inflate or deflate the market appreciation numbers reflected in the analysis. The Bonnie Brae neighborhood is very limited geographically this coupled with the neighborhood stability limits the number of sales for the year over year analysis with 39 sales within the past year. Applying the raw appreciation or depreciation number to the value of your property will not be an accurate reflection of current value. All market factors need to be considered when determining accurate pricing for individual properties.
This week we look at the Bonnie Brae neighborhood. Year over year (06/07/2018 to 06/07/2019 compared to 06/07/2017 to 06/07/2018) statistics indicate a decrease in the Median sales price by 18.9%, decrease in the Average sales price by -4.2%, increase in the Median Price Per Square Foot Above Grade by +6.9%, increase in Average Price Per Square Foot Above Grade by +10.7%. The number of sales during the same year over year analysis increased by +2.6%, the average days on the market increased by +14.4% to 48 days on the market, the median days on the market increased by +52.4% to 32 days on the market. The days on the market includes new construction listed prior to the construction skewing this statistic; however, the number of newly constructed homes within the neighborhood is limited. The current number of active listings indicates a 1.62-month housing supply and market trends indicate returning to normal seasonal market conditions. However, it is noted that the median list price within the Bonnie Brae neighborhood at this time is $849,000. This coupled with a recent increase in inventory account for the increase in the absorption time. The higher price range properties typically spend more days on the market as the higher the price the lower the number of possible buyers. The sale to list price ratio for the most recent 3-month period is 100.00% and indicates a slight increase in the ratio indicating the continuing demand for the neighborhood.
Neighborhood analysis are a general analysis and may not translate directly to the values of individual properties. This analysis does not include builder sales not reported on the Denver Area MLS system. If you are interested in more information with regards market factors specific to your home, feel free to reach out to me. Steve LaPorta, Broker Associate HomeSmart Cherry Creek, [email protected].
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