Denver, Colorado
Buying a home using a Denver buyer's agent, Denver real estate market conditions, relocation news, mortgage advice, general real estate commentary
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Aug. 16, 2008
 Denver’s real estate market just got better for buyers. We thought that June prices had bottomed out, but in July median prices dropped even lower. The drop for residential single-home properties was 3.48% from June to July, but was even steeper from July 2007, a startling 10.1%.
Condo median prices rose slightly, .4%, from $148,345 in June to $149,000 in July. But prices dropped 5.7% from July 2007. One possible answer for the less precipitous price drop for condos affordability. On average condos cost much less than homes. More homes sold in July than in July of last year, but fewer went under contract. Buyers have plenty of homes to choose from, and are taking their time making a decision about buying. They’re asking for more concessions from sellers, and sellers are paying them. Fewer homes are on the market this July than were available in July 2007, which shows a shrinking of inventory likely due to investors snapping up foreclosed homes leading to lowered prices overall. But because the number of homes on the market has decreased, it may be a sign that the Denver market is poised to recover. Sellers continue to take a beating, and predictions about when the slide will stop have proven to be inaccurate. Denver's economy is still outpacing the nation, with “nine of 18 economic indicators show[ing] positive monthly trends and four mov[ing] in a positive annual direction. Recent trends are steady, as this month's number of positive indicators match last month's number” according to the Metro Denver Economic Development Corporation’s August Monthly Economic Summary. Job growth is predicted at 1.5% for the remainder of 2008 compared to the national average of from .5% to 1%. It's still a good time to buy Denver real estate. A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home. On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In an April 2008 report in the Rocky Mountain News by Rob Reuteman, Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000." The Denver Post has updated their very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more. Interest rates are still low (conventional loans were at 6.5% for well-qualified buyers as of August 12, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year. The metro Denver and Colorado state unemployment rate in April were 4.4%. 2,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation. The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country. Values dropped about 2% in 2007 and are expected to drop another 3% overall in 2008. Contrast that with Orange County, California (suburban Los Angeles) which dropped 10.2% or Boston a 13.3% drop. Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%. Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia. For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles. Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.
Jul. 8, 2008
| |
|
Change vs |
| |
8-Jun |
Prior Month |
Year Ago |
| % |
% |
| Single Family (Res + Cond) |
| Active |
26,104 |
-0.87 |
-13.72 |
| Under Contract |
6,308 |
-0.47 |
2.8 |
| Sold |
4,845 |
3.88 |
-5.54 |
| Avg DOM |
97 |
-3.12 |
-0.02 |
| Avg Sold Price |
$267,005 |
4.32 |
-12.19 |
| Residential |
| Active |
20,105 |
-0.9 |
-10.7 |
| Under Contract |
5,091 |
-0.49 |
4.6 |
| Sold |
3,847 |
3.5 |
-5.39 |
| Avg DOM |
94 |
-5.05 |
0 |
| Avg Sold Price |
$286,887 |
3.8 |
-14.32 |
| Condominium |
| Active |
5,999 |
-0.78 |
-22.51 |
| Under Contract |
1,217 |
-0.41 |
-4.1 |
| Sold |
998 |
5.39 |
-6.11 |
| Avg DOM |
108 |
3.85 |
0 |
| Avg Sold Price |
$190,367 |
8.31 |
2.17 |
"Based on information from Metrolist, Inc. for the period June 1 through June 30, 2008.
Note: This representation is based in whole or in part on content supplied by Metrolist, Inc. Metrolist, Inc. does not guarantee nor is it in any way responsible for its accuracy. Content maintained by Metrolist, Inc. may not reflect all real estate activity in the market. |
For the first time since August 2007, average days on market dropped to 94 in June, three days fewer than May and 17 days fewer than January and February. Housing inventory dropped by 8.7% from May, and average prices increased from May by 4.32% to $267,005. Prices still are down by 12.19% from last year this time . But decreasing days on market, decreasing inventory, and rising prices in June indicate buyers' growing interest in purchasing as prices bottomed out in May.
Foreclosures were down in the second quarter from the first quarter of 2008 by 7.5%, though still higher than last year this time by 15.6%.
June median prices for single family homes rose slightly by 1.5% over May to $230,000. Condo median prices rose by 2.3% to
$148,345. Year over year median prices dipped by 12.5% for single family homes, and by 6.1% for condos.
Denver's economy is still outpacing the nation, with job growth predicted at 1.5% for the remainder of 2008 compared to the national average of from .5% to 1%. It's still a good time to buy Denver real estate.
A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.
On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In a report in the Rocky Mountain News by Rob Reuteman (4/19/08), Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."
The Denver Post has a very useful interactive map of home values across the metro area. You'll be able to look at values by neighborhood, discover whether values are rising or declining and much more.
Interest rates are still low (conventional loans were at 6.500% for well-qualified buyers as of July 8, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable.
The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country.
Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.
Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.
For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.
You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, BankRate's moving calculator, or CNNMoney's Cost of Living calculator.
Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references at the Buyers Advantage website. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.
May. 7, 2008
 If you've been waiting for the market to bottom out in Denver before buying, the time has come to invest in your new home. Average prices for single family homes fell 2.71% from March to April. Compared with 2007, average home prices have fallen 17.13%, a much needed correction in the Denver market which was still hyperinflated from double-digit growth in the 1990s. The market seems to have bottomed out and presents a grand opportunity for buyers looking to buy in Denver this spring and summer.
In April the median price of a Denver single-family home was $222,550, down from $224,900 in March, a decrease of 1.04%. The average price declined 2.7% from March’s $274,693 to $267,259 in April. Condos and townhomes fared better. The median price was $134,500, up from $132,000 in March. The number of homes sold in April is up 15% over March this year, and the average days on market before continues to decline from last year this time by 3.16%, indicating a more active market this year than in 2007.
A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.
On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In a report in the Rocky Mountain News by Rob Reuteman (4/19/08), Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."
The Denver Post has updated their very useful interactive map of home values across the metro area. Check out http://www.denverpost.com/ci_6797508. You'll be able to look at values by neighborhood, discover whether values are rising or declining and much more.
NEW - May 8, 2008
The Rocky Mountain News has just published a list of zip codes where appreciation has soared or tanked along with a detailed article of explanation. You can check the zip code of interest to you by scrolling down the left side of the page to where it says "Related Links" and you'll be taken to an Xcel spreadsheet of area zip codes.
Interest rates are still low (conventional loans were at 6.000% for well-qualified buyers as of May 7, 2008, from our preferred lender, Rate One, The Mortgage People). Housing supply is as high as it's been in awhile at 26,171. Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year. The metro Denver unemployment rate in March was 4.4% (3.7% for the state), .7 percent lower than the national rate of 5.1%. 22,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation.
New home builders, faced with a sizeable inventory of unsold homes in early 2007, have pared the excess to virtually nothing. In the 4th quarter of 2007 starts of single family new homes and condos dropped to 1,611, the "lowest quarterly starts in the seven years that Metrostudy has gathered information for the metro area" according to the Rocky Mountain News ("Metro new-home sales, starts "worst in 20 years", February 7, 2008).
The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country. Values dropped about 2% in 2007 and are expected to drop another 3% overall in 2008. Contrast that with Orange County, California (suburban Los Angeles) which dropped 10.2% or Boston a 13.3% drop.
Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.
Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 57% less to live in Denver than in San Jose; 53% less than in San Diego; 61% less than in San Francisco; and 20% less than Seattle. If you live in the east, it will cost 51% less than in Washington, D.C.; 36% less than in Boston; 72% less than in New York; 26% less than in Philadelphia.
For buyers coming from the south and the midwest, Denver could cost more. It costs 14% more in Denver than in Atlanta; 49% more than in Houston; 41% more than in Dallas; 29% more than in Dayton, Ohio; 22% more than in Rochester, MN, and 23% more than in Boise. But living in Denver still costs 17% less than in Chicago, 16% percent less than in Portland, and a whopping 56% less than in Los Angeles..
You'll need to do your due diligence to compare cost of living between your city and Denver at websites like http://www.bestplaces.net, http://www.bankrate.com/brm/movecalc.asp, or http://cgi.money.cnn.com/tools/costofliving/costofliving.html.
Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references at http://www.buyers-advantage.net/references.html Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you fin
Apr. 28, 2008
 If you've been waiting for the market to bottom out in Denver before buying, the time has come to invest in your new home. After a slight uptick in February, prices for condos and single family homes fell on average 1.91% from February to March. Compared with 2007, average home prices have fallen, a much needed correction in the Denver market which was still hyperinflated from double-digit growth in the 1990s. The market seems to have bottomed out and presents a grand opportunity for buyers looking to buy in Denver this spring and summer.
In March the median price of a Denver single-family home was $224,900, up from $221,486 in February, an increase of 1.54%. For condos and townhomes the median price was $132,000, down slightly from $133,750 in February. However, the number of homes sold in March is up 23.6% over February this year, and the average days on market before sale has declined by 7.1% since last year this time, indicating a more active market this year than in 2007.
A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.
On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In a report in the Rocky Mountain News by Rob Reuteman (4/19/08), Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."
The Denver Post has updated their very useful interactive map of home values across the metro area. You'll be able to look at values by neighborhood, discover whether values are rising or declining and much more.
Interest rates are still low (conventional loans were at 6.125% for well-qualified buyers as of April 25, 2008, from our preferred lender, Rate One, The Mortgage People). Housing supply is as high as it's been in awhile at 25,516. Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year. The unemployment rate in March was 4.4%, .7 percent lower than the national rate of 5.1%. 22,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% for the year according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation.
New home builders, faced with a sizeable inventory of unsold homes in early 2007, have pared the excess to virtually nothing. In the 4th quarter of 2007 starts of single family new homes and condos dropped to 1,611, the "lowest quarterly starts in the seven years that Metrostudy has gathered information for the metro area" according to the Rocky Mountain News ("Metro new-home sales, starts "worst in 20 years", February 7, 2008).
The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country. Values dropped about 2% in 2007 and are expected to drop another 3% overall in 2008. Contrast that with Orange County, California (suburban Los Angeles) which dropped 10.2% or Boston a 13.3% drop.
Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.
Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 57% less to live in Denver than in San Jose; 53% less than in San Diego; 61% less than in San Francisco; and 20% less than Seattle. If you live in the east, it will cost 51% less than in Washington, D.C.; 36% less than in Boston; 72% less than in New York; 26% less than in Philadelphia.
For buyers coming from the south and the midwest, Denver could cost more. It costs 14% more in Denver than in Atlanta; 49% more than in Houston; 41% more than in Dallas; 29% more than in Dayton, Ohio; 22% more than in Rochester, MN, and 23% more than in Boise. But living in Denver still costs 17% less than in Chicago, 16% percent less than in Portland, and a whopping 56% less than in Los Angeles..
You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Best Places, Bank Rate, or Money/CNN.
Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See my client references. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your new home in Denver.
In spite of national real estate market "doom and gloom" reports, Denver buyers have a golden opportunity to buy at (or near) the bottom. In February the market showed more activity than it has in recent months. Properties under contract, both detached and attached single family homes, increased over January by 12.66%, and by 4% over February 2007. The number sold decreased slightly, but that number reflects properties under contract in January. Prices for all single family homes showed a slight decrease (-.47%) from January, and a greater decrease (-3.74%) from February 2007.
Median prices increased 2% from February for detached single family homes, but decreased by 1.9% for attached single family homes. The median price for detached homes was $221,486 in February, up from $216,950 in January, but down 5.75% from February 2007. For attached homes the price in decreased from February 2007 by 7.73%. The high number of foreclosures is keeping prices low, giving buyers the advantage.
Homes are still selling for much less than the original price, but by the time sellers finally sell, on average 114 days after first listed, the sale price was 96-97% of list price. Seller concessions, such as down payment and/or closing cost assistance, is still common.
Interest rates are still low (conventional loans were at 6.375% for well-qualified buyers as of March 7, 2008, from our preferred lender, RateOne, The Mortgage People). Housing supply is as high as it's been in awhile at 25,037. Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year. The unemployment rate in December was 4.5%, a half-percent lower than the national rate of 5%. 22,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation.
New home builders, faced with a sizeable inventory of unsold homes in early 2007, have pared the excess to virtually nothing. In the 4th quarter of 2007 starts of single family new homes and condos dropped to 1,611, the "lowest quarterly starts in the seven years that Metrostudy has gathered information for the metro area" according to the Rocky Mountain News (“Metro new-home sales, starts "worst in 20 years", February 7, 2008).
The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country. Values dropped about 2% in 2007 and are expected to drop another 3% overall in 2008. Contrast that with Orange County, California (suburban Los Angeles) which dropped 10.2% or Boston a 13.3% drop.
Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.
Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 57% less to live in Denver than in San Jose; 53% less than in San Diego; 61% less than in San Francisco; and 20% less than Seattle. If you live in the east, it will cost 51% less than in Washington, D.C.; 36% less than in Boston; 72% less than in New York; 26% less than in Philadelphia.
For buyers coming from the south and the midwest, Denver could cost more. It costs 14% more in Denver than in Atlanta; 49% more than in Houston; 41% more than in Dallas; 29% more than in Dayton, Ohio; 22% more than in Rochester, MN, and 23% more than in Boise. But living in Denver still costs 17% less than in Chicago, 16% percent less than in Portland, and a whopping 56% less than in Los Angeles..
You'll need to do your due diligence to compare cost of living between your city and Denver at websites like http://www.bestplaces.net, http://www.bankrate.com/brm/movecalc.asp, or http://cgi.money.cnn.com/tools/costofliving/costofliving.html.
Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references at http://www.buyers-advantage.net/references.html Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your new home in Denver.
Feb. 22, 2008
 Denver women who want to improve their home repair skills are invited to register for classes. This is a great opportunity to learn from a master craftswoman how to do the kinds of things around the house that have mostly been left to the men. Judy Browne is an amazing woman who had a great idea, Workshop for Women. Judy was an AmeriCorp volunteer and learned how to build a home from the ground up working for 14 months with Habitat for Humanity.
Channel 4 Denver featured a story about Judy with a video showing how she teaches women how to do their own maintenance. Have a look! You can reach Judy at 303-284-6354 or you can email her to register for a class.
Feb. 7, 2008
In spite of national real estate market “doom and gloom” reports, Denver buyers have a golden opportunity to buy at (or near) the bottom. The average price in January for single family housing across the metro area was $281,203, a drop from December’s $287,874. The median price for a single family home is down by 8.1 percent from last January to $216,950 from $236,000 and from $220,000 in December 2007.
Condos also dropped to an average price of $165,510 from $170,440 in December, a drop of 2.9%. Median price dropped a whopping 13% from $154,900 in December to $134,000. Condos are a bargain now and are taking less time to sell because of buyer demand. But buyers can still expect to pay 97% of list price for condos and 96% for single family homes.
Interest rates are low (conventional loans were at 5.625% for well-qualified buyers as of February 6, 2007, from our preferred lender, RateOne, The Mortgage People). Housing supply is as high as it’s been in awhile at 18,716. Homes are more affordable. Denver’s economy is steady and jobs are expected to increase this year. The unemployment rate in December was 4.5%, a half-percent lower than the national rate of 5%. 22,000 new jobs are expected in Colorado in 2008, and foreclosures are expected to drop by about 9% according to Patty Silverstein, Chief Economist for the Metro Denver Development Corporation.
New home builders, faced with a sizeable inventory of unsold homes in early 2007, have pared the excess to virtually nothing. In the 4th quarter of 2007 starts of single family new homes and condos dropped to 1,611, the “lowest quarterly starts in the seven years that Metrostudy has gathered information for the metro area” according to the Rocky Mountain News (Metro new-home sales, starts “worst in 20 years”, February 7, 2008).
The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country. Values dropped about 2% in 2007 and are expected to drop another 3% overall in 2008. Contrast that with Orange County, California (suburban Los Angeles) which dropped 10.2% or Boston a 13.3% drop.
Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.
Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 57% less to live in Denver than in San Jose; 53% less than in San Diego; 61% less than in San Francisco; and 20% less than Seattle. If you live in the east, it will cost 51% less than in Washington, D.C.; 36% less than in Boston; 72% less than in New York; 26% less than in Philadelphia.
For buyers coming from the south and the midwest, Denver could cost more. It costs 14% more in Denver than in Atlanta; 49% more than in Houston; 41% more than in Dallas; 29% more than in Dayton, Ohio; 22% more than in Rochester, MN, and 23% more than in Boise. But living in Denver still costs 17% less than in Chicago, 16% percent less than in Portland, and a whopping 56% less than in Los Angeles..
You'll need to do your due diligence to compare cost of living between your city and Denver at websites like http://www.bestplaces.net, http://www.bankrate.com/brm/movecalc.asp, or http://cgi.money.cnn.com/tools/costofliving/costofliving.html.
Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references at http://www.buyers-advantage.net/references.html Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your new home in Denver.
Jan. 17, 2008
 Good news for Denver home buyers according to the chief economist for the National Association of REALTORS®.
Lawrence Yun spoke to area REALTORS® yesterday (January 16, 2008) at a meeting of the Jefferson County Association of REALTORS® in Lakewood, Colorado, citing "irrational pessimism" on the part of buyers for what may be holding back a recovery in the Denver real estate market.
Denver has been the canary in the coal mine since 1991 when it began to recover from the housing slump beginning in the 1980s. Double-digit increases in value in the 1990s followed the S & L crisis, presaging a recovering housing market throughout the early 2000s in the rest of the country. The dot com failures of the early 2000s began a downturn in the Denver real estate market in 2001, much earlier than nationally. Prices stayed steady from 2001 to 2006, and only began dropping in the last quarter of 2007. The drop has been minimal compared to the rest of the country, and isn't expected to last.
Is that canary still a reliable precursor for the rest of the country? Only time will tell.
In early 2008 conditions are optimal for Denver home buyers. Interest rates are at a 45 year low point, prices are lower than they've been in recent months, inventory is high. The "credit crunch" doesn't apply to home buyers who have good credit and a down payment. Colorado just posted the fourth straight annual gain in jobs and the lowest unemployment figures in years (3.8%). Job growth for 2008 is expected to be 2.4%. Unemployment in Colorado is lower than the nation at 4.5% for December. Now is the time to take those home buying plans off the back burner while sellers are making hefty concessions.
If you're thinking about buying a home in Denver, be sure to hire your own Denver Exclusive Buyer's Agent. The fee comes from the transaction at closing paid by the listing agent. Sellers have representation, and so should you. Call Judith Clausen, Broker/Owner of Buyers Advantage Real Estate of Metro Denver at 303-587-3509 or email Judith@Buyers-Advantage.net to see how you can save money and avoid the pitfalls of buying a metro Denver home.
Jan. 8, 2008
 The Denver real estate market continues to improve for homebuyers. While homes available for sale in December continued a decline that began in August, reducing inventory by 9.3% compared to a rise a year ago of .28%, median prices for single family homes also declined from $229,500 in November to $220,000 in December, a drop of 4.14%. Condo median prices increased from $139,000 in November to $140,000 in December, an increase of 7.19%.
The rate of increase of all properties going under contract dropped dramatically in December by 15.12% A year ago the rate was a positive 2.19%, a difference of 17.31%. The credit crunch following the sub-prime mortgage crisis likely was a factor, plus homebuyers taking a longer time to scour the market for their perfect property.
Denver real estate is taking longer and longer to sell, 105 average days on market for single family homes and 114 days for condos.
The percent of list to sale price has stayed steady for most of the year, varying from 97% to 98% for single family homes and for condos. But in December the rate dropped to 96% for single family homes. On average sellers of single family homes are getting only 92% of the price they originally asked for and are having to lower prices substantially before a buyer will bite. Condos are getting only 90% of the original list price, though when they finally do sell, but they're getting on average 1% more than sellers of single family homes.
The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country. Values dropped about 2% in 2007 and are expected to drop another 3% in 2008. Contrast that with Orange County, California (suburban Los Angeles) which dropped 10.2% or Boston a 13.3% drop.
Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.
Interest rates are still low for borrowers of conventional mortgages, below $417,000. The lender I most often recommend quotes 5 3/4% as of January 8, 2008. With the fed expected to lower rates by a full point at its next meeting, interest rates should stay low throughout 2008. It's a great time to buy!
Dec. 29, 2007
I just spent several hours trying to make sense of all the instructions on how to make an InmanWiki for myself. Whew! But it's up now. Take a look (click on the image above)! And if you have any ideas or suggestions, let me know.
Dec. 27, 2007
 The Case-Shiller Price Index, the 20-city composite index of real estate sales of the same house over time, reported a 1.8% price decline from October 2006 to October 2007 for Denver. Most local real estate experts fault the high number of foreclosures as one major cause of the decline, but because of the foreclosures prices in general have been dropping.
The drop from September 2007 to October 2007 was 1.7%. But in the higher price ranges above $322,018 the drop wasn’t as severe, only .7%. In the lower tier of prices under $217,146 the drop is 7.3% which reflects the most common foreclosure price range in Colorado. In the middle tier of prices from $217,146 to $322,018, the drop was 1.2%.
Higher priced homes in the Denver real estate market have stayed steady since June 2007. Middle priced homes rose in July and August of 2007, but then started to decline in September and October. Lower priced homes showed a price incline steadily through the spring and early summer months, but began a precipitous decline in August culminating with the steep decline in October.
Denver’s market remains good for buyers, especially with interest rates staying steady and even declining in the last month. Higher priced homes haven’t increased in price and remain a good buy.
For more information contact me at 303-587-3509 or email Judith@Buyers-Advantage.net.
Dec. 18, 2007
 If you’re thinking of buying a house that needs some remodeling, the top two projects that will recoup at least 75% of your outlay are an attic bedroom remodel (78.9%) and the addition of a wood deck (78.2%). A major upscale kitchen remodel on average will cost you $106,434 and you’ll recoup 69.6% of the cost when you sell. A basement remodel costs $56,476 and will yield $41,656 at sale, a 73.8% recovery.
Recovering remodeling costs isn’t the primary reason homeowners take on a remodeling project. But it’s a factor to be considered in today’s market. If you plan on staying in your home the cost can likely be recovered in a few years with Denver’s appreciation increasing every year from 1988 to 2005.[i] [2006 showed the first price drop in nearly 20 years, but 2007 is expected to show rising values, though slight.] If you’re planning to fix up your house and move within the next year then you probably don’t want to engage in a costly remodeling project. The best projects for resale are remodeling your kitchen or bathrooms, and adding a bathroom as long as it doesn’t reduce the number of bedrooms. In other words, you don’t want to convert a small bedroom into a bathroom. No matter how small the bedroom it’s still a bedroom, and buyers want bedrooms, at least three.
But for those who do want to remodel, which projects will be worthwhile to take on? According to the National Association of REALTORS® annual Profile of Buyers Home Feature Preferences 2007 the addition of whole house air conditioning is a top priority. If the house doesn’t have it, buyers want it. The cost runs about $2,000 to $4,000, depending on the size of the house. If the house doesn’t already have a forced air heating system, the cost to put in ductwork can be prohibitive. In Denver’s climate an acceptable alternative is evaporative cooling (“swamp” cooler).
A minor midrange kitchen remodel will cost $20,512. For a 200 sq. ft. dated kitchen, you’ll be able to reface your cabinets and drawers (30 linear ft.) with new raised wood doors and drawer fronts, replace old hardware, replace laminate countertops and vinyl floors, replace a wall oven and cooktop with energy efficient models, and install a new moderately priced sink and faucet. You’ll be able to paint the trim and add wall covering, which all should make for a modest improvement and a better kitchen.
An in-between midrange major kitchen remodel would give you semi-custom wood cabinets, a 3 by 5 island, laminate countertops, a standard double stainless steel sink with a standard single-lever faucet, an energy efficient wall oven, cooktop, ventilation system, built in microwave, dishwasher, garbage disposal and custom lighting. You’ll get new vinyl flooring and a new paint job, including trim. It will run you $52,816 and you’ll recoup 70.2% when you sell within a year.
If you want to go all out, you can have an upscale major kitchen remodel for $106,434 which will includetop of the line cherry cabinetry with built-in sliding shelves, stone countertops with glass tile backsplash, a built in refrigerator and cooktop and a 36” commercial grade range with a vent above and a built in warming drawer. A trash compactor, built in microwave/convection oven combo, a high end undermount sink with designer faucets and a built in water filtration system are included. New lighting including general, task and under cabinet lighting will be a plus, and the new cork floor will make standing while cooking or cleaning up a dream. The cost will be $106,434 and you’ll be able to recoup 69.6% of the cost if you have to sell within a year.
Other projects have varying rates of cost recovery.[ii] The chart below shows projects many Buyers Advantage clients have expressed interest in. The highest value project across the country for the last few years is a minor kitchen remodel – best for resale and best for comfortable living.
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