What’s Happening in Real Estate

Home Prices in Denver

• “Home prices in the Denver-Aurora metropolitan area have less than a 1 percent chance of declining in value during the next two years, “ “The U.S. Market Risk Index released by PMI ranked Denver as the 10th least risky of the 50 largest metro areas in the country.”
“Overall, year-over-year home values in the Denver area are down 3 percent, while the average drop for the top 50 metropolitan areas is about 11 percent.”
Source: www.rockymountainnews.com/news/2009/jan/15/metro-housing-holding-its-value/

• Average sales price is down by 14% reflecting the shift in the mix to lower priced homes.
• Prices for homes under $600,000 are very stable and may be starting to increase; homes priced under $300,000 are generating multiple offers for Sellers; homes priced over $600,000 are in a Buyer’s market and Buyers who are flexible in their purchase requirements can find exceptional values.
• Homes that need updating or other work by the Buyer are selling slowly and prices are discounted.

Sales Activity

• On a year-to-date basis, total closed home sales in Metro Denver declined 4.2 percent.
Source: Metro Denver Economic Development Corp www.development research.net

• “Foreclosures in metro Denver decline 11.8 percent. Denver area saw first year-over-year drop in at least 12 years.”
Source: www.rockymountainnews.com/news/2009/jan/14/foreclosures-decline-118-percent

• Residential construction activity in Metro Denver continues to decline. Dropping from 16,460 building permits in 2005, only 3,476 permits were granted in 2008.
Source: http://recenter.tamu.edu/data/bpm/sfm2080m.htm

• Available homes to purchase (inventory) has fallen over 20% in the Denver-Metro area since January of 2008 (from 24,600 in 2007 to 19,600 in 2008).