Amid all the unpleasant economic and financial reports, there are some notable bright spots for the Denver real estate market.

 

The Urban Land Institute named metro Denver one of its top 10 real estate markets to watch next year, in its Emerging Trends in Real Estate 2009 report.  The report, which is based on the insights and predictions of real estate experts nationwide, cited some of Denver market’s encouraging features, including a major federal government presence to buffer job losses, as well as steady population growth.  Also, industry diversification and an excellent mass transit system are additional positives for Denver-area real estate.  The 30-year-old Emerging Trends report is the oldest industry outlook for real estate in the nation.

 

Furthermore, SmartMoney Magazine has listed Denver in the top 7 areas most likely to rebound in home prices.  Denver’s overall outlook is sunnier than for most western cities because neither inventory nor prices spiraled out of control during the boom.  Now, with six months’ worth of homes in inventory – the level most experts judge to be roughly in balance – the city offers considerable upside.

 

SmartMoney points particularly to Cherry Creek, where prices leaped 16 percent in the past year.  The area’s popularity illustrates a common theme in U.S. housing markets:  established, close-in neighborhoods are often holding up better than suburbs, because they didn’t endure overbuilding and because higher-income owners were less likely to need subprime or adjustable-rate mortgages.

 

So, there are encouraging signs that the negative factors with respect to overbuilding, speculative pricing and declining sales may be working their way through the system, and the real estate indicators may be starting to look better.