In October 2008, the market for homes and horse properties in the Denver Colorado metro area looks to be improving, even while we await the end of the foreclosure and stock-market hysteria. We are seeing slightly decreasing inventory for available Denver CO real estate.
For several reasons, there is improvement in the housing equation. The number of homes in Denver Colorado that are available for sale declined 20 percent between the end of summers 2007 and 2008. Since the number of homes sold decreased from 5,123 to 4,542, we did not just sell more real estate in Denver. In fact many homeowners simply decided not to put their homes on the market.
More good news comes from the reduction in foreclosures of Denver CO homes and mortgages along with fewer delinquencies. By the end of August 2007, Colorado had about 6,550 foreclosure filings compared to approximately 4,700 by August 2008.
Since January 2005, the rate of Denver homes sold has ranged from about 12 percent to 22 percent. During summer 2008, the rate reached 20 percent, harking back to the summer of 2005 when the inventory in the Denver metro area was reduced by a record-breaking 22 percent.
According to Realtor.org, the entire nation saw a 7-percent decrease in inventory. At the end of August 2008, the United States had about 10.4 months of inventory on hand, down from 10.9 months in July 2008. Nationwide, overall new construction starts declined August 2008. But in the western part, housing starts increased 10.8 percent.
Another plain and simple reason for the improvement is that many of us have learned some necessary lessons during the housing crisis. Buyers, sellers, lenders, and realtors are better informed than they were a few years ago. Many are more cautious. But smart buyers are taking advantage of the market while it is dipping a bit to move forward with their investment goals. It may take a few years for the marketplace to see the dramatic changes that we saw in the last five years, but prices will keep rising in the long run.
Real estate continues to be a good, practical investment when we buy for the right reasons, in the right places, and for the right price. Buyers are into their home investments for the long-term benefits, more so than the house flippers from a few years ago. For more information about horse properties and real estate in the metro area, call Michael Paul of Realty Oasis at (303) 268-6052.
Posted by: Editor
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