Is the media ever going to stop the gloomy news flashes of the burst housing bubbles, exurbanite number of foreclosed homes and the general horrible real estate climate? Yes the cycle is making a turn that is not upward and Yes there are rising interest rates, however, it's better to read between the lines of what sells papers to find the real truth about what the Denver real estate market is doing.
Through 2006 and into first quarter of 2007 we've seen high levels of inventory throughout Denver at all price points. The wave of summer buyers has been sweeping up some of the available homes bring our currently available inventory down 5.37% from this same time last year. This is a positive sign as we step into the third quarter of 2007 with less homes available sellers can look forward to having less direct competition in their neighborhoods. Building permits are down 46% from this time last year as builders brace themselves for the slowing market.
|Home Sales Price Change|
|Single Family Homes||-3.86%|
|Average Home Price|
|Single Family Home||$316,024|
Currently the average days a home for sale will stay on the market is 95 days and in July 2007 the Denver Metro area sold a total of 4,980 homes for the month. The Denver real estate market is not turning circles on itself but it is holding steady--read: a mildly rolling wave on a graph as opposed to the media portrayal of sea sickening undertow that draws downward eternally off the chart.
When it's all said and done now is still a good time to purchase real estate in Denver-- interest rates are reasonable and there are solid investments and good homes currently on the market. Investment opportunities such as buying at pre-construction pricing on new construction or a fixer in a good neighborhood are great ways to take advantage of the stable market.
The Denver real estate industry is having some difficulty wading through the disappearance of sub-prime financing and the tightened leashes of the lending industry. As always, reading between the lines of the media is the only way one can make logical sense of the media reports. The fact is newspapers with positive news don't sell so relying on a trusted resource is the best way to get solid facts about the current Denver real estate climate.