The Denver real estate market continues to show signs of improvement.  TeamCox constantly monitors the Denver real estate market’s absorption rate, which measures the rate that homes are sold. Thus, if there are 100 homes on the market and 10 are sold each month, there is a 10-month absorption rate.

The Denver real estate market was not nearly as scary as other cities’ housing markets in October. Metrolist released its monthly numbers this week, and there were many promising signs that the Denver real estate market is on its way to recovery.

·       Decreasing Inventory: Denver-area housing inventory plunged for a third straight month in October to a three-year low. There were 20 percent fewer homes for sale than there was in October of last year. Homeowners, who do not need to sell right now, are simply waiting to put their homes on the market. As we’ve been reporting for months, lower inventory will put pressure on Denver home prices to increase.

·       Increasing Sales: Home sales in the Denver real estate market continued to increase last month, rising 11.28 percent to 4,282. While the average Denver home price declined from last year, the increase in home sales is obviously great news that suggests that we may have already hit the bottom.

·      Positive Outlook: The Denver real estate market was recently named among Urban Land Institute’s “Top 10 real estate markets to watch next year.” The report, which is based on opinions of nationwide real estate experts, cited the reasons for its optimistic outlook were Denver’s diverse industry base and mass transit system

If you are prospective homebuyer, don’t miss your opportunity to purchase your dream home while the market is recovering. The market is likely to come alive during the spring selling season. If you are a home seller, consider listing your home for sale while the competition is minimal. For more information on the state of the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.

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What is available in the Denver housing market this autumn? Here is a rundown:

New Construction Before Year’s End: I received a list of Richmond American’s inventory yesterday, and wanted to share a few thoughts with my perspective homebuyers. There were many homes available in all price ranges. New construction in the Denver area is fresh on my mind, ever since we helped a young couple purchase a new D. R. Horton home last week. Homebuilders are compelled to bargain in this challenging market. We are able to negotiate bonuses, lot upgrades, decorator upgrades, closing costs and more!

Pre-Foreclosure and bank owned homes:  There is still an inventory of distressed sales in the Denver real estate market, but they are going fast. We do not expect them to be a huge factor in 2009, so act fast!

Homes that need updating:  Homes with dated interiors, poor color choices, or neglected yards are usually the last to sell.  These homes can present a great opportunity for buyers who are willing to put some time and effort into repairs and upgrades.  One of our clients recently purchased a home for $167,000. While we knew this was a great deal, we didn’t realize how good of a buy it was until the appraisal came in at $180,000.  Even the lender’s appraiser was impressed!

Don’t wait. There are so many folks out there that lament the “could of,” “should of refrain,” so don’t be one of them!  If you have questions regarding inventory in the Denver real estate market, please contact a TeamCox member at 303-400-6060.

There is more good news for Denver real estate market investors.  HomeVestors of America, Inc. recently ranked Denver no. 6 among its top 10 residential real estate markets for investing. Here is the list:

(1.)  Dallas

(2.) Houston

(3.) Fort Worth, Texas

(4.) Atlanta

(5.) San Antonio, Texas

(6.) Denver

Investors buying homes for cash is an emerging trend, so they can avoid the hassles dealt by mortgage lenders.  It is also easier to cash flow the purchase without financing. Many homes that we have recently sold have cash flowed even with factoring in the cost of financing and the time value of any down payment. Prices are just too attractive for many investors not to buy.

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

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Today, we would like to welcome Mary Steinmeyer, Certified Mortgage Lender, from Denver’s Mountain Crest Mortgage. She shares TeamCox Realtors’ positive outlook on the Denver housing market. 

Denver Real Estate Market Commentary

 

I understand why many potential first-time homebuyers are sitting back waiting for some good economic news before buying a home. I also know many home buyers are sitting back waiting for the "bottom". We are definitely in the middle of a historic economic crisis. Just watch the news — reports abound. I’ve heard our current climate compared to the Great Depression. For me from a real estate perspective, it reminds me of the savings and loan crisis of the late 1980s.

 

I purchased my first home during that period in 1990. As a 21-year old professional, I purchased a condo with a 7.5%ish interest rate for $36,000. In five years when the market had recovered, I sold that same property for $78,000 — giving me a down payment on a new house! A house a then sold 5 more years later for more than its asking price because we’d entered a "buyers market." A 10-year cycle that changes my financial situation. 

 

Now can I guarantee the same results today? No. No one can. But do we know that historically all markets cycle? Yes. And we are in a down cycle. The upside is ahead.

 

Now I can also tell you that historically Denver has entered the down cycle before the rest of the nation and also exited it sooner. So while nationally talk of recession abounds, there is good news for Denver.

• Thousands of jobs are being added throughout the state; check www.jobopenings.net for a complete list.
• The Metro Denver Economic Development Corporation is reporting:
• Denver job growth is 1.6% while the national average is 0.2%
• Denver-area employers added 3,800 jobs between July and August
• Education and Health Services are Denver’s fastest growing job sectors
• 32% of Denver area employers plan to hire
• Metro Denver’s foreclosure filings declined dramatically between July and August, down by 35% to 68% by county.

To quote the report "these more positive indicators suggest that the framework for stable housing markets could be in place. Market fundamentals — including home prices, invetory, and job growth — are already stronger in Metro Denver than they are nationwide."

In my opinion, it’s a great time to become a homeowner. Do buyers need to be cautious? Of course. Only work with licensed, reputable real estate agents and lenders who can help you navigate this market. The timing is good for the right purchase.

Mary Steinmeyer
Licensed MB100017382
Certified Mortgage Lender
(720) 339-0526
FAX (303) 583-8832
mary@marysteinmeyer.com
www.marysteinmeyer.com
 
Mountain Crest Mortgage
724 South Pearl Street
Denver, CO  80209
www.mountaincrest.com

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It seems that we have all been looking down quite a bit lately – everyone is looking for the bottom of the stock market, and for the bottom of the Denver real estate market. While I’m still looking for the bottom of the stock market (hopefully, it is almost here!), it certainly seems that we have already hit the bottom of the Denver real estate market. 

Metrolist released its monthly sales figures yesterday, which revealed that Denver home sales continue to increase, while inventory continues to decrease. The statistics indicated that there was a 14.1 percent increase in Denver home sales from September 2007 to September 2008. Inventory plummeted 21.1 percent from last year. The only blip was that the median Denver median home price of $216,150 is a 12 percent decrease from last year.

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Ever wonder where the good news is these days?  Well, here is some food for thought:
 
There are a handful of states causing the negative media coverage, including Ohio, Michigan, and Indiana. The other states causing problems are the previously booming housing markets of California, Florida, Nevada, Arizona, Utah, and Illinois - notice that COLORADO is not on the list! Analysts have stated that the problems in the formerly red-hot housing markets of California, Florida, Nevada, and Arizona, are stemming from speculators walking away from mortgages that they can no longer afford.
 
Here are some other interesting facts:

1. 35% of homes in the United States do not have a mortgage.
2. Approximately 94.88% of mortgage loans are performing.
3. Only 25% of all mortgages are subprime loans, and of these, 75% are performing.
4. The foreclosure problems are mainly in the nine states mentioned above. 
5. The biggest foreclosure problems are in Michigan, Ohio, Nevada, California, and Indiana. Some of these are manufacturing states that have had massive job losses. Since 2001, Michigan has lost over 400,000 jobs. These states would probably have had problems no matter what the market was doing. 
6. The other states experienced significant over building. 25% of the foreclosures in these states are on properties that are held by investors who were speculating.
7. In Colorado (and 42 other states), the number of foreclosures has declined in 2007 and 2008 from 2006.

Buyers waiting to purchase a home when the all-clear signal is flashed will be left sitting on the sidelines. There is no question that there is bad news in some markets. While Colorado isn’t in the top foreclosure list, we’re having our issues, too. What irks me is that there is also a lot of good news that is either being buried or not being reported at all. TeamCox Realtors will continue to post the positive and negative news regarding the Denver housing market.

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

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Denver Home Prices Faring Better than Rest of the Country