“Buy American. I am.”  We echo Warren Buffet’s comments in the October 17, 2008 issue of the New York Times.  With the stock market still on the roller-coaster ride of a lifetime, folks continue to pull their money out in cash equivalents.  However, real cash value is sure to deteriorate with the likely inflation caused by the Federal Reserve printing paper money for bailout appeasement.

Buffet explains the simple rule that dictates his buying principles.  “Be fearful when others are greedy, and be greedy when others are fearful.”  So, too, in today’s fearful market, he’s been moving his own personal investments from U.S. Government Bonds to U.S. equities.

The prices are definitely right today to invest in sound American companies and real estate.  Although in the short term, all may appear weak, the pillar companies and surrounding land are strong enough over time to endure the temporary quakes of the economy.  Buffet ventures to say that “most major companies will be setting new profit records 5, 10 and 20 years from now.” 

Nationwide, elements of the economy, especially the banking, manufacturing, and housing sectors, continue to look pretty bleak.  The fearful buyer will miss out on current deals, coupled with the unbelievably low interest rates.  Some people do remember the 18-percent interest on mortgages during the early 80s, but more and more are too young to believe that interest rates could ever go that high.

The Mile High City, with better rankings for business and employment, holds more promise for your hard-earned cash.  A diverse selection of solid companies is woven into our landscape and the local real estate market is already rebounding in many areas.

For more information about farms, horse properties, and real estate in the area, call Michael Paul of Realty Oasis at (303) 268-6052.

Data released by Denver’s Multiple Listing Service, Metrolist Inc., zeroed in on the resale market versus the new-home sales.  During September, the report counted 4,265 sales in the resale category—up 14.13 percent from last year at that time.  This was great news after the lower-than-usual figures posted for the normally vigorous month of August.  August prices were flat—a story echoed in other U.S. cities and communities.  Sales for existing Denver Colorado homes have still been down during the first three quarters of this year as compared with the same time period in 2007.

What do buyers consider to be well priced?  Take a look at the median selling prices to draw your own conclusions.  The median selling price for single-family homes fell to $216,150, down from $245,000 last year.  For condos, it is $139,900 versus $148,000 last year.  A median price is like grading on the curve in the classroom.  When we list the prices top to bottom, the median price will be the middle price.

Average prices are different.  To compute the average selling price, we add up all of the prices and divide by the number of homes sold.  Because one very expensive home can skew the number dramatically, the median price usually more accurately reflects the trends.

The average selling price for single family homes in September was $260,118 and for condos it was $161,960.  According to Metrolist a fourth of the homes sold in the $200s along with condos in the $110,000 to $150,000 price range.

How long does it take a seller to move a home?  In 2007 and 2008, the average number of days on the market has been just over 100.  But as the inventory decreases, sellers may find that homes start moving a little more quickly.  About 24,000 unsold homes remain on the market this year versus over 30,000 last year. 

For more information about farms, horse properties, and real estate in the metro area, call Michael Paul of Realty Oasis at (303) 268-6052.