25th Jun, 2009

Denver Real Estate Market Rekindles

Finally, the kindle carefully placed under the wet logs of the Colorado real estate market is sparking around Denver.  The rate of Denver home sales are steadily improving.  For four consecutive months, the percentage of sales of listed residential single-family Denver homes and condominiums improved.  Pending home sales for Denver rose 7.4 percent from March 2009 to April 2009.

According to Metro Brokers Real Estate Advisor, “Denver recorded the best year-over-year return in the S&P/Case-Shiller Home Price Index during April 2009.  S&P reported that annual declines for Denver CO real estate are down 5.5 percent.  That is the best rate in the entire nation.  The next best ratings are Dallas, whose decline is down 5.6 percentage points and Boston down 8 percent.

Several factors are contributing to the positive news.  Denver was one of the first real estate markets in the nation to notice a housing downturn.  The Mile High City has consequently had longer to regroup and figure out solutions than other cities.  Housing affordability conditions are at historic highs.  Those conditions include ratios such as income to house prices, etc.  Then interest rates have continued to stay low, albeit they are edging up.

Additionally, first-time buyers are taking advantage of the $8,000 tax credit offered to them through the stimulus bill.  To qualify for the $8,000 credit, first-time buyers and buyers who have not owned a primary home in three years must purchase a primary home before November 30, 2009.  As first-time buyers get into the market, sellers will be free to purchase their next homes.  The domino effect could help the entire real estate market to rebound and really crackle.

Other kindle is catching fire.  Although the average sold price for the Metro Denver dropped in January to $213,330, it steadily increased during the following three months to $233,482 in April 2009.  Median sales prices in the Denver-Aurora area are down 13.7 percent from last year while they are down 19.8 percent in the entire Western portion of the nation.

From January 2009 through April 30, 2009, existing home sales in portions of Greater Denver include:

  • Denver 3,180 (87.1 average days on market)
  • Aurora 1,831 (83.4 average days on market)
  • Littleton 592 (82.0 average days on market)
  • Parker 382 (93.9 average days on market)
  • Highlands Ranch 358 (80.8 average days on market)
  • Castle Rock 305 (125.5 average days on market)
  • Englewood 168 (79.7 average days on market)
  • Lone Tree 29 (108.5 average days on market)

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.

Denver CO homes for sale under $250,000

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