GOOD NEWS FOR THE DENVER HOUSING MARKET!

Posted By Deborah Tucker @ Apr 23rd 2010 1:40pm In: Real Estate Trends

It seems like everyday bad news is being delivered by the media in one form or another.  Whether it’s adjusting unemployment figures higher, horror stories about the unsustainable national debt, or how we are headed towards another financial meltdown, the bad news never seems to stop coming.  Well, for a change of pace, I have some good news for Colorado homeowners and buyers.  Home sales and prices are trending up! 

Many experts feel the downward economic spiral is highly attributable to the housing crisis.  If the housing market brought the economy down, then the housing market can help bring it back up.  Again, keep in mind, Colorado’s housing market is normally counter-cyclical to the rest of the nation.  While many areas of the country are still trending down, with a high number of foreclosures and property values continuing to adjust lower, Colorado is turning the corner.

Statistics provided by MetroList for the first three months of 2010, show the average sales price for both residential and condominiums is $245,474.  For the first three months of 2009, the average sales price was only $222,246, an increase of 11%.  The total number of sales has also increased from 12,840 in 2009 to 14,011 in 2010.  The number of homes listed for sale is also down slightly from last year. 

So that sounds like good news all the way around for people looking to sell their homes and for those homeowners who just want to know that their biggest investment is actually starting to appreciate. 

So how is that good news for buyers?  Well, compared to several years ago, prices are still down, especially since 2002.  So, great deals are still out there.  Also, interest rates are still at historically low levels.  A 30 year fixed interest rate is hovering around 4.75% to 5.0% and if you are going to be in your home for less than five years, adjustable rates are around 3.75%.  Low interest rates translate into more home for less money on a monthly basis.  Sometimes, your payments can even be lower than what you would pay for rent!  Also, depending on when you are reading this, the $8,000 first-time homebuyer tax credit is still available through April 30, 2010.

So the next time you start hearing how bad things are, keep the above statistics in mind and know that the Colorado housing market may very well be on the rebound.  Remember too, that many so-called national media housing experts tend to use Zillow or other unreliable sources to produce results that have no basis in reality.  So the next time you want to know the real scoop on what the Denver housing market is really doing, ask me, a true real estate professional.


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