Total new-home closings: 5,970
Population: 2,754,258
The good: As the market exits an adjustment period, closings flatten but hold steady.
The bad: With the sweet spot in sales shifting upward to $300,000, spec homes will require larger investments.
The bottom line: Adjusting to new-home prices that averaged $334,762 in February 2015 allows builders to keep on keeping on.
The Denver market has undergone dynamic changes over the past couple of years, exiting an adjustment period but holding strong. A growing economy kept this market moving in 2014, but Metrostudy reports forecasted a slight decline over the course of that year, due to price increases. At that time, lots available for building homes under $200,000 had disappeared from the market, while those aimed at the $200,000 to $250,000 range were fading fast. The predicted trajectory proved true, as new-home prices rose year over year in February for two consecutive years, from $281,923 in 2013 to $334,762 in 2015, expanding the sweet spot to include not only the $200,000 to $250,000 range, but also $250,000 to $300,000. In March 2015, year-to-date permits remained flat over 2014.
