As we have continued to assert, the Denver Colorado real estate market is doing relatively well. Its forward movement hinges on a growing population that needs Denver CO homes to live in as well as the supporting commercial real estate in Denver.
In February 2009, Builder Magazine, in conjunction with Hanley Wood Market Intelligence, published its metric for determining the markets with the best and least potential. The region of Greater Denver real estate achieved the #12 spot in the Healthiest Cities in the United States category, despite recent turbulent news in the local building industry.
The magazine, “The Information Source for the Building Industry,” expects the Healthiest Cities to lead the real estate market recovery. Measuring trends over a five-year span, Builder concluded that the healthiest markets have similar traits. For example,
- Most did not see extreme price increases during the boom and so they have avoided deflation during the bust.
- They are all in superior locations near mountains, oceans, and/or universities.
- Home values are not falling drastically.
- There are a good number of applications for building permits.
During 2008, there were 8,800 building permits pulled in the Mile High City. Although the number of permits issued is down from 20,864 in 2005, it is close to the national average decline in permit numbers.
The strength, however, is in our commercial real estate market. As it accommodates an annual 2-percent growth in population, the metro area is expanding retail and service sectors and even courting new headquarters for Fortune 500 companies.
The central location in the nation is healthy for business activity. There are numerous interstates, railroads, the Denver International and Centennial airports, thriving downtown and several large business parks, large government presence, world-class universities and research centers, high-tech companies, and a diverse depth of industries.
The study identified the busiest builders as D.R. Horton, Richmond American Homes, Standard Pacific Homes, Shea Homes, and Engle Homes. As recent news revealed that builders such as Beazer and Centex have pulled out of the area and Village Homes of Colorado as declared bankruptcy, other builders are glad to take up the slack. There is still an abundance of land to develop between the mountains and the plains.
While new developments and homes are still going in, existing home sales are selling at a more rapid pace. In 2008, the median price of an existing home was an affordable $219,300, down only 10.6 percent in the last year. If all goes well, however, the rebounding sales of new homes will be right behind.
For more information about real estate in the greater metro area, including farms and horse properties, call Michael Paul of Realty Oasis at (303) 268-6052.
