The Denver Housing Market is Stalled at a Stoplight Waiting for a Green Light

You can think of the current Denver real estate market as stalled at a stoplight waiting for a green light. Since August of 2006, there has been very little movement in Denver’s home prices, the number of sold properties, or in the number of homes on the market. While this stagnancy isn’t necessarily great news, it could be much worse as other real estate markets across the country take nosedives under the duress of the mortgage meltdown combined with the slowing real estate market. 

The Rocky Mountain News recently reported that the average price of a Denver area home sold in August slightly increased to $329,783 from $320,092 in August of 2006. The median price of a Denver single-family home sold in August was $257,500, which is slightly higher than the median price of $252,900 from a year ago. The number of homes sold in August of 2006 (5,025) compared to August of 2007 (5,010) remained virtually unchanged. The number of homes on the market, which hovered around 30,000, also remained unchanged from a year ago.

One of the biggest challenge facing Denver homebuyers, especially first-time buyers, is the tightening lending market. The national mortgage meltdown has prompted lenders to tighten their belts, which leaves homebuyers with fewer options and a more tedious process to go through to obtain financing for their dream home. The bright side is that the Denver real estate market is still a buyer’s market so first-time buyers can choose from a wonderful selection of condos and single-family homes in great neighborhoods.

The good news is that the stoplight will eventually turn green and the market will be off and running again. Do you have questions or comments about the current state of the Denver real estate market? Please contact TeamCox Realtors  - we would love to hear your opinions about the current state of the Denver housing market.

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