Real Estate Information

Well, the housing market continues its mauling of the economy. Below are some interesting facts about the Denver Market for 4th quarter, 2007. Local analysts believe that the Denver market is at or close to bottom, so here's hoping that 2008 will be our turnaround year!

• Denver ranks 10th on Forbes.com list of Best Places for Retirees. Factors include arts, leisure, cost of living, property tax rates, and the retirement job market.
• Denver is the 2nd best city for business according to Dow Jones; however, Site Selection magazine did not place Colorado in the top 25 state business climate rankings.
• Metro Denver employment saw nearly flat job growth between September and October, adding only 1,900 jobs. Total employment is up 1.7% through October, ahead of the 1.4% national average.
• Metro Denver home sales increased 3% between September and October while unsold inventory declined by 5%. YTD, sales are down 1.1%
• Metro Denver foreclosure filings moved up again in October. Colorado now ranks #7 nationally in the amount of foreclosure filings.
• Economic research firm Global Insight estimates that the ripple effect from the combination of reduced building activity and lower home values will cost the US Economy $166 billion in 2008. The addition of failed mortgage loans and property tax collections is expected to cost US homeowners $1.2 trillion in property values in 2008.

Information courtesy of Denver Newspaper Agency Marketing Department.

The statistics just came out for 3rd quarter 2007 and while foreclosures are still in the news, there is some promising statistics for the Denver Metro area!

- unemployment rate is Colorado edged up to 3.8% in September, below the national average of 4.5%

- 23% of Denver area employers say they expect to add jobs in Q4 2007...the Denver area job growth is outpacing the national average

- the September US Consumer Price Index is 2.8% higher than a year ago

- Metro Denver home sales plummeted from 5,010 in August to 3,737 in September, a 25% drop. YTD home sales are down 5% compared to a year ago

- The average single family home price in Metro Denver fell more than 7% in September, from $329,800 to $305,500. YTD, single family home prices are down 1% through September. Early October numbers are down 5.4% from a year ago. Condominium prices are down 3.4% YTD.

- New home sales in Metro Denver are down by 33% from the same period last year. Builders sold 5,842 homes in the first half of the year. New home sales could be off by 50% at the end of 2007 compared to 2005.

- Metro Denver foreclosure filings declined to 1,894 in September, still up 40% over the same period last year. Countrywide Financial recently launched a $16 billion program aimed at helping homeowners keep their homes.

- Building permits declined to 1,046, down 19.7% from a year ago. Single family permits are down 35%, duplexes down 9%, but apartment permits are up 106%.

- The vacancy rate in Denver's rental market is at its lowest level since 2001. Apartment vacancies averaged 5.3% for Q32007. The apartment vacancy rate in Boulder/Broomfield is only 3.6%

- The first Union Station redevelopment project has broken ground.

- Centura Health has purchased 50 acres in Castle Rock for future development of a full service hospital. 

The amount of homes going into foreclosure are increasing every day. Colorado ranks #6 in the nation for foreclosure. That's an increase of 30% from 3rd quarter of 2006. And while a foreclosure market can be the break some people need to be able to purchase a home, for those who are losing their homes, it can be devastating. So much so that there has been an increase in suicides for those who have lost their homes. Remember, if you are at risk for losing your home to foreclosure, speak with your mortgage company or a mortgage counselor. They  will work with you to try to find a solution so you can keep your home.

What an exciting time for Denver! Rockies fever is everywhere and it seems everyone is in a great mood! The other thing that is causing excitement was the Fed's decision to drop interest rates again. Couple that with a buyers market and you have the perfect time to purchase a home. Foreclosed homes have generated so much interest that some properties are receiving multiple offers. It's a terrific time to buy!

All we're hearing in the news lately is how high the home foreclosure rates are and that prices are dropping. But that's not necessarily true for all areas within the Denver real estate market. A recent data analysis report showed that there are many neighborhoods in the metro area that are still experiencing increasing home prices and low foreclosure rates. What's very interesting about this report, is that the neighborhoods that are suffering the worst price drops can be right next to neighborhoods that are enjoying rising home values. 

In the Southeast metro area, Kingsborough has had a 6.6% drop in prices and a 53% foreclosure rate. Stonegate has shown a 2.1% increase in values with a 9% foreclosure rate.  Southmoor Park has enjoyed improved home values of 9.4% with a 4% foreclosure rate.

In the Southwest metro area, Columbine West has had a 1.3% decline in home values with a 34% foreclosure rate, Chatfield East has seen a 19% drop in prices with a 14% foreclosure rate. While the Sedalia area has seen a 5.8% increase in home values with a 3% foreclosure rate.

In the Northwest metro area, Aspen Creek has seen a 19.9% increase in home values with a 9% foreclosure rate while the Northglenn area has seen a 8.4% decrease in home values and a whopping 52% foreclosure rate.

In the Northeast metro area, Stapleton has enjoyed a 10% increase in prices with only a 2% foreclosure rate, yet right next door in Montbello, they have suffered a 9% decrease in prices with an incredible 72% foreclosure rate.

It's worth researching an area prior to purchasing a home to know whether you are getting the best deal you can.