Denver Real Estate Update – October 2009

The weather is cooling off, but how is the Denver real estate market faring this fall? Metrolist released its September statistics this week, revealing that the Denver housing market has definitely stabilized over the past few months.

The year-over-year picture isn’t pretty – single-family and condo sales decreased 15 percent from 2008. The price trend offers hope, though, with the average sold price ($251,112) for a Denver home, including single-family and condominiums, increasing 4.88 percent from last year.
There is more good news to report in September, including that Denver housing inventory is 17 percent lower than it was a year ago, and almost 2 percent lower than it was in August. Lower inventory is crucial to a housing inventory.

There is also good news about the Denver economy. The state’s jobless rate fell a half percentage point in August to 7.3 percent. This is the lowest number since February and it contradicts the upward trend of national unemployment rate of 9.7 percent, which inched up last month.

Despite the bright spots, we are still in the midst of a Denver buyer’s market. This is simply the best time in recent memory to purchase a home in the Denver housing market. Interest rates are hovering at around 4.85%, and there is a great selection of homes on the market. Plus, if you are a first-time homebuyer in Denver, you do not miss you’re your opportunity to take advantage of the government’s First Time Homebuyer’s Tax Credit until November 30th.

For more information on the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

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Denver Real Estate Market Finally Showing Signs of a Comeback!

There are encouraging signs on the state of the Denver real estate market – foreclosures are declining, while sales and home prices are increasing. It seems that the Denver housing market may have finally hit the bottom, and is beginning a long-awaited comeback. There are several statistics to support this notion:

• While year-to-year sales have decreased, Denver area home sales rose 3.9 percent from May to June, suggesting that the market has hit its bottom. 

   

• According to Metrolist, the median price of a Denver home inched up to $230,000 from May to June, a 1.5 percent increase. 

   

• The Rocky Mountain News reported last week that the number of second quarter Denver metro area foreclosures declined 7.5 percent. While the Colorado foreclosure picture still isn’t pretty, it is very encouraging that the foreclosure pace is finally beginning to slow. 

   

• The Denver housing market’s inventory continues to decline. This trend will inevitably lead to a healthier market as home sellers face reduced competition from resales and new homes.

What does this mean if you are a perspective Denver homebuyer? Should you continue to wait the market out, or is it time to dive in? These recent signs of improvement suggest that this summer is a great time to begin the homebuying process. This is the best buyer’s market in years, and you don’t want to miss the selection and negotiating power that it offers. For more information on the ever-changing Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

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Is the Denver real estate market finally showing signs of a long awaited rebound? TeamCox Realtors definitely thinks so! According to a recent Denver Post article, the number of Denver area homes sold in May increased 9.4% from April. While this number is still down over 8 percent from May 2007, the monthly increase is a great sign that conditions in the Denver housing market are improving. The median prices for a Denver single-family home ($226,500) and condo also slightly increased from April to May.

Even the battered national housing market is showing signs of improvement. The National Association of Realtors released its Pending Home Sales Index report today, which indicates the number of resale homes currently under contract. The number of pending sales in April was the highest-level in six months. The Midwest and the West fared particularly well with 13 percent and 8.4 percent increases in pending sales, respectively. This crucial report is a good indicator of real estate statistics in the coming months. Foreclosures, which continue to hamper both the local and national real estate markets, are attracting droves of bargain hunters – another sign that the market has finally bottomed out. Colorado, which ranked number one in foreclosures in 2006, is now ranked only number 25, but continues battle a high foreclosure rate of 3.28%.

If you are a prospective Denver homebuyer, this may be your last chance to enjoy a buyer’s market. With market conditions improving and interest rates inching up, this summer is the time to find your dream home! For more information on the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

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While the Denver real estate market has been branded a “buyer’s market” for well over a year now, I did a double take last week after reading that Forbes Magazine had chosen Denver as one of its “10 Best Cities for Home Sellers.”

Although it was unexpected to see this tidbit in black and white, it did not come as a big surprise, as TeamCox Realtors has recognized the strengthening seller’s market for the past several months. Why? Sellers are facing less competition from builders, the Denver economy remains sound, and the market is gaining strength faster than in many other parts of the country. Builders have decreased their activity, resulting in a 58% decrease in building permits, and sold off the bulk of their inventories months ago. Currently, homebuilders are scanning the market for signs of a rebound before increasing activity. While this is obviously not good news for Denver homebuilders, the decreased competition is nothing but promising for Denver sellers.

The other good news for the Denver housing market is that area job growth remains steady, at 2%, which is contradicts national trends. The Denver area is also anchored by a diverse group of industries that seem to be weathering the economic downturn quite well.

Whether you are a Denver homebuyer or seller there is no better time than the present to make your move! For more information on selling your home in the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

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While the national news headlines are reporting doom and gloom regarding the United States economy, it is important to also analyze the local economic picture in addition to the national one. And, it may make you feel better about things if you look at Colorado’s economic picture versus the national one. The good news is that Colorado’s economy has been faring a bit better than many other areas of the country. Here are just a few examples:

-The Denver Post reports that Thomas Hoenig, president of the Federal Reserve Bank of Kansas City which oversees Colorado, told state legislators and bankers this week that Colorado is in a better economic position than many other states, including California and Florida. While weak, the Denver housing market is much stronger than many other areas. The local economy is also supported by a diverse industry case including aerospace, energy, tourism, bioscience, etc.

-While it has increased a bit, Colorado’s unemployment rate of around 4.5%, continues to hover below the national average.

 -The Post also reports that the National Association of Realtors has reported a positive outlook for the Denver real estate market and even went so far is to predict that Denver may be among the next markets to possibly  “boom.”

-In addition, The Denver Post reports that a new risk-index model shows a less-than-5-percent chance that home prices in Denver will be down by 2010. In contrast, there is an 89 percent chance that Las Vegas home prices will be down by 2010.

All of these reports are great news for the Denver real estate market. If Denver’s economy remains strong, then a rebound is on the horizon. Don’t miss your opportunity to buy into the current Denver buyer’s market. For more information on the Denver’s economic picture or regarding the state of the Denver housing market, please contact TeamCox Realtors. 

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1. Selection, Selection, Selection. There are approximately 23,000 homes for sale in the greater Denver real estate market. There are homes in every buyer’s price range with plenty of inventory including single family homes, condos, townhomes, urban, suburban, etc.
2. Fewer Multiple Offers.  If you have ever been in a market where your offer was one of several, giving the seller  the right to pick and choose, this simply is not the case in the current Denver market. Although good homes will still sell quickly if priced correctly, it is very unlikely that your offer will have any competition.
3. Make An Offer. In a seller’s market, your offer had to be full asking price or more  In today’s Denver housing market, the ratio averages 96% of the listed price to the sales price. If the home has been on the market for an extended period of time, the ratio will tilt even further in the favor of the buyer. Most sellers will not be insulted by any reasonable offer.
4. Taking Your Time Is Okay.  When the market is hot, a buyer must be ready make a snap decision. When you found a home that might work, you had to write a full price offer on the spot. However, in today’s market you can more slowly while scrutinizing the available homes and taking the time to fully consider each home’s condition and location. 
5. A Thorough Evaluation. In order make a competitive offer in a hot market, it is not uncommon for a buyer to waive their right to a house inspection, a sewer inspection, an appraisal or even noted house repairs. The seller is king.  This market has a certain degree of calmness and a chance for the buyer to perform complete and competent due diligence.
6. Builder’s Inventory: While the inventory of new homes is certainly not what it has been, if there is a new home in inventory that meets your needs, the builder will do whatever it takes to accommodate a buyer’s wishes including upgrades, changes to the finishes, or even a basement finish.  If it is in inventory, the builder needs to move it
7. You Want What? In a hot market, the home might be sold “as is”.  This market has most sellers willing to fix any reasonably repairable requests. 
8. Little Competition from Investors. While we do see some presence of   investors returning to the Denver market, they are not yet here in large numbers.  Today’s buyer is usually a relocating family or a family with changing needs.
9. Location, Location, Location.  Moving closer in. As Denver has grown and urban sprawl developed, many buyers had no choice but to follow the sprawl and move further out.  We are now working with a few of these buyers who wish to be closer to work, the theatre, restaurants or the new Denver light rail system
10. Real Money Is Available.  The “funny money" that many lenders had gotten into the habit of offering is no longer around. The No Doc, Low Doc, Gee-You-Are-Breathing-Have-I-Got-a-Deal-For-You money is gone.  For buyers with good credit who plan to repay their debt will have no problem getting financed.  Heck, a lot of that easy stuff was for the convenience of the lender.  No Doc meant just that—no work on the lender’s part.  What’s wrong with a 30-year fixed or an FHA loan?  It’s probably in your best interest!

For straightforward answers to all of your Denver real estate questions, please give a TeamCox member a call today at 303-400-6060!

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There has never been a better time to dive into the Denver real estate market! Prospective Denver homebuyers were given an extra incentive last week (the week ending November 29th) to take the plunge into the Denver housing market, currently a strong buyer’s market. Nationally, 30-year fixed mortgage rates fell to 6.10 percent from 6.20 percent, the lowest level the lowest rate since October of 2005.

If you don’t already own a home in the Denver metropolitan area, now is the time to buy one! There are many beautiful homes to choose from that boast very attractive price tags. Falling interest rates is just one more component that makes home ownership in the Denver real estate market very appealing. TeamCox Realtors urges you to take advantage of the current Denver housing market’s idyllic situation – a buyer’s market coupled with falling interest rates.

Are you ready to search for your dream home? Please contact TeamCox Realtors for information on buying a home in the Denver real estate market.

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The month of October was filled with grim news about the Denver real estate market. It has gotten so bad that many of us dread reading the latest business stories about the local and national housing markets’ dismal condition as it is filled with reports of foreclosures, the suffering homebuilder industry, falling home prices, etc. Just as we thought all good news was lost, Denverites received a bit of positive news on their doorsteps on Halloween. Finally, I found a story that fell in line with my own perceptions on the Denver housing market. The Rocky Mountain News reported on Wednesday that the Denver area had the highest price appreciation in the entire country. While the S&P Case-Shiller Home Price Indices report of a .3 increase among Denver homes is very meager, at least it is an increase! And, it is the most impressive number found in the entire struggling national real estate market, which posted an average decline of .7 percent.

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We are all eagerly waiting for the Denver real estate market to rebound to its glory days but is there any hope of this? The Denver real market continued at its sluggish pace in July. Here is the latest bad news, not so bad and good news about the Denver and national housing markets:

THE BAD NEWS:

·         According to a recent article in the Rocky Mountain News, 5,951 Denver area homes went under contract in July, which is a three percent decrease from June.

·         The average and median prices of Denver homes decreased to $316,024 and $255,000, respectively (down from $334,833 and $263,000 in June). The July average and median homes prices were also lower in July than they were during the same period in 2006.

·         Sales in the usually strong high-end home market dropped for only the second time this year.

·         The mortgage crisis is getting worse both nationally and locally as millions of homebuyers’ interest rates are adjusting. These mortgage fears have given the stock market a real beating over the past few weeks.

THE GOOD (AND NOT SO BAD) NEWS:

·         According the Rocky Mountain News article, the number of unsold homes in the Denver real estate market decreased to 30,272 from 31,989 in July 2006, which is a 5.4% decrease.

·         There was almost no change in the number of unsold homes on the market (approximately 30,000) from June to July.

·         Mortgage rates have recently decreased which means only good things for a stagnant real estate market

·         According to The Denver Post, the number of unsold homes in Denver decreased by 5.4 percent in July from the same period last year. This is the biggest percentage decline seen during seven consecutive months of gains.

·         According to the article in The Denver Post, the number sold homes in the Denver metro area increased 2.9 percent in July from July 2006.

·         If you are a buyer in Denver, you have plenty of choices and negotiating power since it is still a buyer’s market!

NATIONAL HOUSING MARKET NEWS:

·         Things are far worse in other real estate markets across the country – just remember that stagnancy is better than free falling. Denver didn’t experience the huge increases that other markets saw in recent years so there isn’t far to drop.

·         While the National Association of Realtors has reduced national sales forecast for the sixth consecutive month, it also trimmed back its original projected decrease in home values. This is a sign that things may not be as bad as once thought.

·         National homebuilders are desperately struggling to keep up with the decrease in activity. As a result, homebuilders’ stock prices and profits are dwindling.

Do you have questions about the Denver real estate market? For more information, please contact TeamCox Realtors – Your Denver Real Estate Experts.

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Denver continues to be a buyer’s paradise. With excess inventory on the market and Denver leading the nation in foreclosures, every serious seller must be correctly positioned in the market place. That means offering their home in top-notch physical condition and at a price that stands out. Loan fraud is a leading contributor to the mess that Denver is in. With the assistance of lenders that “wanted a deal” and appraisers that “wanted to keep working”, many homeowners have totally tapped out not only all of their equity but a couple of year’s worth of future equity as well. Then their attitude becomes “why stay”? It is estimated about 25 percent of the near record 31,450 unsold homes on the market will "statistically never sell" because their mortgages are higher than their sales value. I suspect these homes eventually will end up in foreclosure.

In September, 4,740 previously owned homes were placed under contract in the metro area, a 23 percent drop from the 6,158 placed under contract in September 2005, according to Metrolist, a local MLS tracking service. The sales also were down 16.4 percent from the 5,673 homes under contract in August, although sales typically drop during that time for seasonal reasons. The Metrolist data also show that the median price of a single-family home fell to $243,500 in September, a 2.6 percent drop from $250,000 a year earlier.

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