The Good News and Bad News about the Denver and National Housing Markets

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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