The economic downturn has resulted in sensational headlines painting a gloomy picture of the national housing market, and there are some harsh realities we all have to face.  The median home price slipped 15% in metro Denver in November compared with the same month a year ago.  Additionally, the number of properties sold in November dropped 16.1 percent compared with the previous year and was down 31.8 percent from October.  But, did the price of every house in metro Denver drop significantly?  Actually, most of the decline is due to the mix of what has sold, with the volume of distress sales up 41 percent while regular home sales declined 24 percent.  Since more inexpensive homes are selling, this is the main driver of the price reduction.  The number of home sales that were foreclosures or short sales varies considerably across the metro area, with Greenwood Village at 11% while Commerce City had 75% such sales, and most foreclosures have been homes under $200,000.

And, yes, there are some benefits and rays of hope in today’s home market.  If you’ve been looking to buy a home, today’s market is good news for home buyers.  You can be optimistic about getting into the market or moving up by taking advantage of excellent interest rates or concessions offered by home builders or homeowners.  There is still a strong belief in the long-term viability of housing as a solid investment if you buy at the right price.

Furthermore, Colorado and Denver are faring a bit better than other parts of the country, with Denver home values declining at a slower rate than the rest of the nation.  Denver was the third-least affected market in the current downtrend, after Charlotte and Dallas through the first three quarters of the year.  Colorado foreclosure activity is poised to drop this year from 2007, with 14 percent fewer completed foreclosures in the first nine months of this year compared to the same period in 2007.  It is the first time that there has been a year-over-year drop in foreclosures since at least 2003.  Also, Colorado remains among the fastest growing states in the nation, placing third with a population growth of two percent, after Utah and Arizona and tied with Texas and North Carolina.  As of July 1, Colorado’s population was 4,939,456, according to the Census Bureau.

So, if you are a potential homebuyer, today’s market offers some surprising home-buying advantages.  And, if you are holding on to your current home, hoping for better times ahead, you can rest assured that Colorado is still attracting newcomers and doing better than the rest of the nation.  In the long run, the area’s steady growth and a diverse economy will help shelter the value of your home until a full market recovery is achieved.