…and we’re proud to be part of the upbeat news! In spite of the challenges of the economy in general and the housing market in particular, the Arnie Stein Team continued its consistent exceptional performance during 2008. You may have seen the recent newspaper listing of the Denver Board of Realtors Million Dollar Roundtable of Excellence, in which we were named the #4 team in number of units closed and the #7 team in the highest volume closed. Additionally, we were honored as the #1 team in most units sold at Fuller Sotheby’s International Realty as well as the #3 team in the Highest Closed Volume. We’re always here to serve all of your real estate needs with our extensive knowledge, expertise and experience.
Although sales in the Denver area are well off past years’ pace, Denver is different from other parts of the country in terms of how the immediate future looks. The most obvious indicator of that is the surprising lack of supply of homes and condos on the market in lower price ranges. As of the first of May, inventory in the 7 county metro Denver area is almost 10,000 units below the supply of late spring of 2006 and about 6,000 less than last year. That’s the smallest inventory in six years, and the supply actually dropped from the first of April, the first time that’s happened in ten years. In the under $250,000 market, there is just over 3-1/2 months supply of homes available, which obviously reflects a seller’s market and is generating multiple offers on some listings.
With the spring buying season getting into full swing, home sales and prices in metropolitan Denver increased in April, with the number of homes sold up 5.7 percent and the median price of a single-family home up 3 percent compared to the previous month. While more than half of the homes sold were priced below $200,000, the upper-tier market is also starting to show signs of life, with thirty-three homes priced at more than $1 million sold in April. Many real estate experts believe the real estate market has hit bottom in the Denver area.
A recent headline stated that 30-year fixed rate mortgages tied a record-low rate, with records dating back to 1971. The average rates slid to 4.78 percent, which is more than a point lower than a year ago. And, of course, the expansion of the first-time home buyer tax break as part of the President’s recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers.
Another article stated that foreclosure activity in metro Denver declined at one of the fastest rates in the nation during the first quarter, falling 45.8 percent from the same period in 2008. Among metro areas with 1,000 or more properties receiving a foreclosure filing between January and March, only Worcester, Massachusetts bested Denver’s rate of decline.
Economists say that the signs of a housing market recovery will be reflected in three factors: supply, demand and affordability. Maybe the glimmers of hope will turn into the bounce-back we’re all hoping for!