It is great to be a home buyer in Denver

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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