Some more positive economic and real estate developments are bringing 2009 to a close.  Colorado unemployment fell slightly in November, dipping to 6.9 percent, well below the national unemployment rate of 10 percent.  Mortgage rates in the state continued to sink, recently reaching 4.54 percent on a 30-year fixed loan.  Metro Denver’s housing market showed its first year-over-year improvement in 11 months, as the number of homes sold in November surged 23 percent over the same month in 2008.  At least part of the increase was attributed to a rush by first-time buyers to take advantage of the $8,000 federal tax credit originally scheduled to expire at the end of November, but later extended through the spring.  But it wasn’t just first-time buyers who returned to the market.  The median sales price for condos and single-family homes increased, a sign that the more expensive properties were also selling well.

The median price for a single-family home was $218,000 up 11.8 percent from the November 2008 price of $195,000, with a healthy mix of move up and first time buyers.  Additionally, for the first time in nearly three years, sales in the $1 million-plus market increased 30 percent year over year, which might indicate the beginning of the recovery in this market level.

And now for some of my predictions for 2010.  Most everyone agrees that the real estate market next year will be much like this past year.  The number of foreclosures will continue and may even increase.  The remarkably low interest rates available now make homes more affordable than ever – this may be the best time to buy real estate in our lifetimes!

Some trends continuing into the next year include fix and flips regaining popularity, with financing even available.  Going green is popular and is most definitely the trend of the future.  Solar energy is on the rise, especially with new construction.  Virtually all consumers will be upgrading their windows, insulation, appliances and mechanical systems with energy efficient furnaces, air conditioners, etc.  Rumor has it that “cash for clunker” appliances is also coming.

Government incentives are working!  First time homebuyers can still receive up to an $8000 tax credit and now any current homeowners who may want to move can get as much as a $6500 tax incentive if they have lived in their current home for 5 of the last 8 years  (Note:  income restrictions apply).  Hurry, April 30, 2010 is the deadline.

Our team is outperforming the market.  We received the number 4 ranking in the metro area for the most closed transactions in 2008, as recognized by the Denver million dollar roundtable.  Please keep us in mind for all of your real estate needs as well as for the next generation of home buyers and those who owe more than their home is worth and need to sell – we have extensive experience in short sales.

Best wishes for a happy and health New Year!