Downtown Denver Condo Market Facing Challenges with Surge in Inventory
The downtown Denver condo market is currently experiencing a harsh reality as potential sellers are dealing with a significant increase in inventory, while potential buyers are becoming more cautious about making large purchases.
Recent data from the Denver Metro Association of Realtors reveals a 29% rise in available condos and townhomes compared to last year. However, this surplus has not translated into sales, with purchases decreasing by 15% in the first five months of the year. Median prices have also dropped by 6%, and the average days on the market have increased from 38 to 53 days.
Despite these challenges, a new development, Upton Residences, is set to make a mark on the downtown condo market. The two-tower project located at 18th Street and Glenarm Place is expected to be completed next summer, offering a total of 461 units.
Units at Upton Residences range from $365,000 for a 500-square-foot one-bedroom condo to $3 million for penthouses as large as 1,855 square feet. The most popular units so far have been the two-bedroom, two-bath condos priced between $700,000 and $900,000.
To attract buyers, the developer is offering incentives such as a free year of HOA dues and a 25% commission advance for the buyer’s real estate agent at the contract signing.
While there is excitement surrounding Upton Residences, many potential buyers are hesitant to commit as the building won’t be ready for occupancy for another year. Some buyers are waiting to see if interest rates will decrease, while others believe they will still have options available when the building is completed.
For those interested in older units with history, a 10th-floor condo previously owned by Gov. Jared Polis is available at 1827 Grant St. The 2,800-square-foot unit is listed for $1.3 million and offers amenities such as an indoor pool, sauna, and private fitness facility.
Despite the challenges faced by realtors in convincing potential buyers to consider moving downtown, Upton Residences is attracting interest from a diverse range of buyers, including younger urban singles and couples, as well as older individuals looking to downsize or relocate from a 55+ rental community.
With amenities like a rooftop pool, hot tub, resident lounge, and retail space, Upton Residences aims to offer a unique living experience in an area that has not previously been residential.
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