Happy Thanksgiving!
As I write my blog this morning I can’t help but think about how thankful we should be for our real estate market in Denver. Other parts of the country are still trying to find the bottom of their markets and in some areas foreclosure rates continue to rise. So, if you’re someone who has watched the value of your Denver area property diminish over the past few years, be thankful that you live in a place where there is a light at the end of the tunnel.
Good Housing News
I’ll be honest, we are far from being out of the woods on this nationwide housing crisis, but there is plenty of good news for Denver. According to the latest S&P/Case-Shiller Home Price Index (September 2009), Denver home values are down only 1.2% from a year ago, the lowest of the 20 metropolitan areas tracked. By the way, nationwide values are down 8.9%, so are you thankful now? As we drill down into more recent data from our local MLS, there is even more good news.
- The average sold price of residential homes in the Denver Metro area (not including condos) in October was $261,771, a 4.6% increase from October of last year and a 13.4% increase from our annual low in January.
- Denver’s residential homes averaged 92 days on market in October, our lowest level in over 2 years and significantly better than our annual high of 107 days in February.
Now, it is likely this data is skewed slightly because of the First Time Homebuyer Tax Credit (and seasonality), but fortunately Congress extended the tax credit until June of 2010 (which we are also thankful for), so we can expect to feel the same benefit during the extended tax credit period. Forecasts are also good for November, but we should expect to see a normal seasonal slowdown for December and January before continuing our upward trend in the springtime. Nationwide trends are also promising, so Denver is well positioned for a strong housing recovery. Translation: if you have been waiting for the bottom of the Denver Real Estate market, you probably missed it.
What about Foreclosures?
According to the National Association of Realtors, foreclosures are expected to continue rising nationwide over the next 6 to 12 months, but once again, Colorado (and Denver) is better off than the rest of the country with current foreclosure rates below the national average. The reality is that high foreclosure activity will be a part of our real estate market for many years to come, but the good news is that more and more real estate brokerages (like iNET Property) are specializing in helping homeowners avoid foreclosure. Unlike the rest of the real estate market, foreclosure activity doesn’t slow down over the holidays, so we are committed to working overtime with our clients who are facing foreclosure. If you or someone you know needs help, please give us a call.
Happy Thanksgiving from the team at iNET Property!
