Once again, there’s some of the good, the bad, and the ugly.  July was a relatively strong month in the Denver metro area, with home resales the best in 2009 but still down from the same month of 2008.  It was the strongest July as far as the rate of sales each week in at least seven years.  On the other hand, the median price of a single family home dropped locally while nationally home prices crept upwards by 0.3%.  The National Association of Realtors reported that its index of sales contracts signed in July for previously occupied homes rose 3.2 percent, the sixth straight increase.  The report showed the housing market is rebounding faster than expected from its historic bust.  Low prices and the looming expiration on November 30 of a first-time homebuyers’ tax credit of up to $8,000 have spurred sales.  The Realtors group projects that around 2 million first-time buyers will take advantage of the credit this year.

Subsequently, the number of metro-area homes sold in August dropped 14 percent compared with a year ago.  Meanwhile, the median price of a single-family rose to $227,000 in August, a 0.89 percent increase compared with the same month last year.  In certain price ranges, the available inventory equates to less than a month of sales.  An increase in buyers, accelerating consumer confidence, steady employment numbers and a drop in interest rates are all helping to stabilize the housing market.

In today’s real estate market, size matters.  Smaller homes saw prices increase from May to August, while larger homes lost value.  The average sales price for a single-family home smaller than 910 square feet increased 14 percent during the period compared to last year, while the average price for homes larger than 2,875 square feet declined by the same amount.  It’s still tough to sell larger, high-end houses, but buyers are swarming over smaller homes, with first-time buyers leading the charge.

On the local economic front, employment in Colorado grew 4,900 in August, and the state’s jobless rate fell a half percentage point to 7.3 percent, the lowest since February, while nationwide the unemployment rate was 9.7 percent in August.  Unemployment in the Denver area was 7.4 percent during the same period, down sharply from July’s 8 percent rate.  The number of Colorado businesses that laid off 50 or more employees at a time fell in August to its lowest level in 11 months, with 374 Colorado workers filing for unemployment insurance as a result of mass layoffs in August, down from 1,536 in July.

Additionally, there have been some other positive perceptions of the area, with CNBC rating Colorado #3 in America’s top states for doing business, and ABC News rating Boulder as a Top 10 place to sell a home in the nation.  Denver made a list of the 10 best places to grow up and Colorado ranks 11th best among the states in an evaluation of economic performance.

Serving the entire Denver real estate market, the Arnie Stein team will protect your interests regardless of economic conditions and whether you are buying or selling.  Let us take care of all of your real estate needs!