Several signs point to an impending recovery in the Denver housing market, so the timing is perfect to purchase a home, especially since mortgage rates are near historic lows but are expected to rise later in the year.  Denver home prices have already started to rise.  The online real estate valuation firm, Zillow.com, reported that Denver and its suburbs recorded the biggest dollar gain in home values of any metro area in the country last year.  Denver home values rose by $7.87 billion in 2009, recouping some of the $20 billion shed in 2008, Zillow said in its fourth-quarter real estate report.  Many metro areas have seen a sharp decrease in the supply of foreclosed homes coming to sale, resulting in more stable home values. 

In January, the median price for a single family home in the Denver area was $210,000, up nearly 16 percent from $181,500 in January last year.  The upswing in pricing is a function of the mix and available inventory which has been declining for almost three years.  The number of homes on the market declined 9.9 percent to 17,785 compared to the same time last year.  The low inventory is beginning to put pressure on pricing because there is not much available in the lower price ranges.

Forbes recently listed Denver as one of the top five metro areas where renters should buy now, with market conditions making it a particularly good time for some renters to take advantage of the government push to make homeowners out of the one-third of Americans who still rent their homes.  They predict a five year home price index rise of 12.34% in the Denver area.  Although rental rates have fallen, it has not been nearly as rapidly as home prices.

So, if you’ve been thinking about buying a home, take advantage of the current tax breaks, low prices and interest rates.  They won’t be around much longer!  Call the Arnie Stein Team today to help you take advantage of the compelling reasons to buy real estate in Denver.

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!

One of the requirements for becoming a Member of the Top 5 in Real Estate Network® is to provide my community with critical real estate information so you can make the best possible decision when buying or selling a home. To that end, I wanted to pass along some key facts about the extended and expanded tax credit that are critical for you to understand in order to take advantage of this opportunity:

1. Eligibility: The tax credit is now available for first-time home buyers and eligible current homeowners. A first-time home buyer is an individual who has not owned a principal residence during the three-year period prior to the purchase. This law applies for both parties in a married couple; if you haven’t owned a home for three years, but your husband has, then neither one of you can qualify for the tax credit. A qualified current homeowner who wished to move to a different home, must have owned and resided in their residence for five consecutive years out of the last eight.

2. Salary requirements: Single taxpayers with incomes up to $125,000 and married couples with a joint income up to $225,000 qualify for the full tax credit. Single taxpayers who earn between $125,000 and $145,000, and married couples who earn between $225,000 and $245,000 are eligible to receive a partial credit.

3. Amount of credit: The maximum credit amount for first-time home buyers is $8,000; the maximum credit amount for current homeowners is $6,500. The federal tax credit amounts to 10% of the cost of the home, up to a maximum credit of $8,000 for first-time home buyers and $6,500 for current homeowners. Under the new legislation, a tax credit may only be issued for homes purchased for $800,000 or less. The tax credit is a true credit—it does not have to be repaid unless the homeowner sells or stops using the home as their principal residence within three years after the purchase.

4. It’s refundable: The tax credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if you owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405, which you file with your original or amended tax return.

5. Timeline: The credit is available for homes purchased on or after November 7, 2009 and before May 1, 2010. The federal income credit can be claimed on one’s individual or joint tax return for the purchase of any single-family home (newly-constructed or resale, single-family detached, townhomes or condominiums) between the dates of November 7, 2009 and April 30, 2010. Home purchases subject to a binding sales contract signed before May 1, 2010 will also qualify for the tax credit as long as closing occurs by June 30, 2010.

For more information on the home buyer tax credit, e-mail me or visit www.irs.gov. Please forward this email to friends and family who may also be able to take advantage of this unique opportunity to purchase the home they’ve always wanted.

Last month marked the best October since at least 1990 for sales contracts in the Denver metro area, with 4,910 homes placed under contract, a 9 percent increase from October 2008.  One reason October sales were stronger than a year ago is because the impact of the recession was starting to hit home last year.  The average price of all homes sold was $261,771, in increase of 4.6 percent from October 2008.  Additionally, the number of unsold homes on the market last month marked the lowest inventory for an October since at least 2001.  Also, activity was strong, with the weekly sales rate the highest since 2001 as well.  With fewer homes on the market and buying activity strong, it’s a reasonable expectation for continued improvement next year.

Recently, MSN real estate named Denver as one of ten cities where real estate prices are rebounding, declaring that the city avoided the real estate bubble that hit the east and west coast states.  Other encouraging signs include the latest report that the Colorado unemployment rate for October fell to 6.9 percent, falling from 7 percent in September, 7.3 percent in August and 7.8 percent in July.

Adding to the potential for a continued upswing in real estate, the tax credit for first time home buyers has been extended, and it has additionally been expanded to include people typically in the move-up market.  In addition to the tax credit of up to $8,000 for first-time buyers, the new plan expands the program to include a $6,500 tax credit for those who have lived in their home for at least five of the past eight years and are buying another home.  This targets move-up buyers as well as new purchasers, so people who already own homes will feel comfortable enough to sell their home and buy another one.  The legislation also increases the income eligibility limits for the tax credit from $75,000 to $125,000 for individuals and from $150,000 to $225,000 for joint filers.  The cost of the home cannot exceed $800,000 and must be under contract by April 30, 2010 and closed by June 30, 2010.

With the Denver area faring better than most of the rest of the nation, it’s nice to be on the forefront of the hoped-for upswing and the potential explosion of the pent-up demand for real estate.  Now is looking like a great time to buy or sell – let the Arnie Stein team work for you and with you to meet all of your real estate needs.

Sales of existing homes rebounded sharply in September to their highest level in two years, getting a strong boost from people responding to the first-time buyer tax credit, which is freeing many sellers to buy another home.  Pending home sales have increased for seven straight months, the longest in the 8 year history of the index.  Still, home values nationwide continue to decline, falling 8.5% from a year earlier.  While extending the tax credit would help lift housing prices, it would only be temporary.  However, if economic indicators such as consumer confidence show improving trends, experienced homebuyers will stay in the market and take advantage of the low prices, even without the credit.

Regionally, the strongest market was the West, where sales climbed 13% in September.  However, the median price of homes sold during the month was down 15% from last year.  In the Denver metro area, however, home resales actually declined in September compared with a year ago, but median sales prices of houses and condos increased.  Although the majority of the activity has been in the lower price ranges, an increasing number of move-up buyers in the market has pushed prices higher.  The number of homes on the market declined 17.1 percent from a year ago, a number that’s likely to continue falling through the end of the year because of the holidays and the high number of first-time buyers in the market.  Many people seeking lower-priced homes are even being out-bid.  Although mortgage rates in Colorado have recently climbed slightly, rates for 30 year fixed home mortgages recently averaged 4.94 percent.

One of the last states to succumb to the U.S. recession, Colorado appears poised to be among the first states to escape its grasp.  If technology and business spending fuel the recovery, then Colorado is in a strong position to benefit.  Forecasts call for the state’s job growth to return to a positive 0.4 percent next year, fourth-best among all states.  Retail sales in the state are expected to rise 4.4 percent next year.

As we all know, real estate has always gone through cycles.  At present, it is still a strong buyer’s market, but it appears as if we may be poised to reverse the trend, given an improving economy, a smaller inventory of homes on the market, an expanding buyer pool and low mortgage rates.  There may never be a better time to buy than the present.  Give the Arnie Stein team a call, and we can help you find the perfect home for your needs and desires!

Subsequently, the number of metro-area homes sold in August dropped 14 percent compared with a year ago.  Meanwhile, the median price of a single-family rose to $227,000 in August, a 0.89 percent increase compared with the same month last year.  In certain price ranges, the available inventory equates to less than a month of sales.  An increase in buyers, accelerating consumer confidence, steady employment numbers and a drop in interest rates are all helping to stabilize the housing market.

In today’s real estate market, size matters.  Smaller homes saw prices increase from May to August, while larger homes lost value.  The average sales price for a single-family home smaller than 910 square feet increased 14 percent during the period compared to last year, while the average price for homes larger than 2,875 square feet declined by the same amount.  It’s still tough to sell larger, high-end houses, but buyers are swarming over smaller homes, with first-time buyers leading the charge.

On the local economic front, employment in Colorado grew 4,900 in August, and the state’s jobless rate fell a half percentage point to 7.3 percent, the lowest since February, while nationwide the unemployment rate was 9.7 percent in August.  Unemployment in the Denver area was 7.4 percent during the same period, down sharply from July’s 8 percent rate.  The number of Colorado businesses that laid off 50 or more employees at a time fell in August to its lowest level in 11 months, with 374 Colorado workers filing for unemployment insurance as a result of mass layoffs in August, down from 1,536 in July.

Additionally, there have been some other positive perceptions of the area, with CNBC rating Colorado #3 in America’s top states for doing business, and ABC News rating Boulder as a Top 10 place to sell a home in the nation.  Denver made a list of the 10 best places to grow up and Colorado ranks 11th best among the states in an evaluation of economic performance.

Serving the entire Denver real estate market, the Arnie Stein team will protect your interests regardless of economic conditions and whether you are buying or selling.  Let us take care of all of your real estate needs!

Locally, there were only 20,853 unsold homes on the market in June, which is a 20.1 percent drop from June 2008, and 5,664 homes were placed under contract, a 6 percent increase from May.  Sales, however, were down 10.2 percent from June 2008.  There are actually fewer homes on the market now than in 2002.  The median, or middle, price of a single-family home sold in the Denver area in June rose to $237,500, a 3.2 percent increase from June 2008 and a 7.95 percent rise from May 2009.  The median price of a condo, however, fell from June 2008 but was up from May 2009.

Still, potential home buyers are skittish, with more than half of potential homebuyers saying they’re not yet prepared to jump into the market, and fear of losing their jobs is the number one reason, a recent poll shows.  Americans recognize there are great deals to be had in the housing market, but many are in too much of a financial pinch at the moment to even think about buying. 

Again, the Denver area seems to be doing better than the rest of the country.  For the second consecutive month, the Denver area fared the best among 20 U.S. cities reporting drops in home prices.  The index showed an average price decline in of 18.1 percent in April 2009 versus April 2008.  Denver reported a 4.9 percent decline, the best in the survey.  Additionally, Denver is among eight cities that reported a month-over-month gain in prices.  A recent Moody’s study showed only 23 out of 381 of the nation’s metropolitan areas showed a moderating recession, meaning their economies were not contracting as severely as six months earlier.  The Denver metropolitan area was one of the 23.  Forbes Magazine recently rated metro Denver as the number one area for long term promise for home buyers.

Although the supply of Denver metro homes is way down, the demand is also lagging, making it a continued buyer’s market.  However, the pendulum is poised to swing back the other way.  So, if you are considering either buying or selling, now is a great time.  Call the Arnie Stein team, and see how we can help you meet your goals.

The May metro Denver sales figures reveal that the average price of single family homes increased from $254,442 to $262,066.  The number of properties under contract increased 3.1%, and the number of properties closed went up 7.0% compared to April.  The number of existing homes sold has increased for four months in a row.  While still down substantially from last year, the month to month rises seem to indicate that we are beginning the climb up from the real estate bottom.  First time homebuyers are especially driving the market in Denver, and cash investors are buying up low-priced inventory.  The market is now seeing multiple offers in the lower price ranges indicating price appreciation is occurring now at the entry level prices which will translate to more sales in the spring and summer.

NBC’s Today Show ran a segment recently projecting Denver as the market with the potential for making the nation’s first comeback from the housing slump.  The area is showing one of its lowest inventories of homes for sale in six years, and there has been a relative lack of overbuilding.  The Denver area unemployment rate declined to 7.5 percent in April compared with 8.2 percent in March, and is much better than the national unemployment rate.  Although unemployment is rising, its rate of acceleration is starting to slow.

MSNBC recently stated that “if you want to be in the right place when the recovery starts, that place may be in Colorado, Idaho, Oregon, Texas or Washington.”  They believe that due to a high concentration of tech-related industries, we are well positioned to take advantage of the pent-up demand for technology.  Also, we largely missed out on the housing boom and were among the last to join the recession, so as conditions begin to turn nationally, we have less of a hole to dig ourselves out of.

The Denver area fared the best among 20 U.S. cities reporting sharp drops in home prices.  A home-price index for the 20 cities dropped 18.7 percent in March compared with March 2008.  Denver reported a 5.5 percent decline, better than Dallas and Boston.  Economists believe that this is one more sign that the economy will be on the mend moving towards positive growth by the fourth quarter.

So, we’re still on the road, but perhaps we’ve passed the unpaved portion and are about to start cruising down the smooth superhighway.  At the very least, we know that real estate values will eventually rebound, and buying today will eventually take advantage of the buy low, sell high strategy.

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!

Another report showed the number of Denver area homes sold in March increased 29.1 percent to 3,206, compared with 2,484 in February, possibly indicating pent up demand.  The median price of a single family home in March was $203,950, up 6.2 percent compared with February, and the median price of a condo was $128,500, a 9 percent increase over February.  The report also indicates there were 20,628 homes on the market in March, up 2.8 percent form the prior month but down 19.2 percent compared with the same time last year.  Homes are starting to sell faster, with the average days on market declining 6.7 percent to 101.  Single family homes were on the market an average of 99 days, which was the first time in six months the number was under 100 days.

Current active inventory is at a 6 year low right now, and homes under contract this month are up 9.63 percent over last month.  Some segments of the market are seeing multiple offers in the lower prices ranges, indicating price appreciation is occurring at the entry level, and the $8,000 Tax Credit for First Time Homebuyers will give a jump start to homes priced under $400,000.  Even high-end properties are also starting to move.

Housing experts have long argued that weaker rates of home-price appreciation in Denver compared with markets such as Las Vegas and Phoenix this decade would eventually translate into a quicker recovery here.  Speculators buying multiple housing units didn’t flock to Denver, which would have fueled a double-digit run-up in prices similar to what cities like Phoenix saw in 2005 and 2006.

Recently, Freddie Mac interim chief executive John A. Koskinen said that mortgage rates are “probably as good as it’s going to get” and the housing market is likely to rebound sooner than some forecasts.  He added that interest rates are probably close to bottoming out, and therefore, people who put off home purchases should take advantage of the low rates and a buyer’s market.

So, if you’re ready to buy or sell, it seems as if it could be a great time!  Give the Arnie Stein team a call, and let us assist you with all of your real estate needs.

The recently signed Homeowner Affordability and Stability Plan should stabilize the housing market through the home affordable refinance program and the home affordable modification program which is estimated to help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly payments.  Colorado already reported that the state’s foreclosure filings dropped 2% in 2008, compared to 2007 when fillings grew by 40.3%.  Compared with other states, Colorado was early in getting borrowers and lenders to talk to each other to resolve a loan default.

Denver was the national leader for housing prices last year.  Home prices in the Denver area dropped 4 percent during 2008, but that was the smallest decline of the 20 metropolitan areas followed in a recently released study.  Some local experts were predicting that the Denver-area housing market should hit the bottom no later than the end of the third quarter of this year, and maybe as early as the end of the second quarter.  Denver was among the cities with the least run-up during the boom, with prices rising by 40% from 2000 until the peak in August of 2006.  Home prices have since given back less than 10 percent of the gains, contrasted with cities like Miami and Los Angeles, where prices rose almost 200 percent but have since declined by almost 40 percent.

The number of homes placed under contract in the Denver area housing market in February increased 9.2 percent, although it’s still down 18.4 percent from the same period last year.  The median price for a single-family home was up 5.8 percent from January and condos rose 4%, with both down substantially from 2008.  It does appear that home prices in our area have moved closer to stabilization.  The month-to-month improvement points toward rising consumer confidence.

Even nationally, analysts say home prices are closer to stabilizing today than at any time in the past nine years.  Based on the latest data, prices for new and existing homes combined now equal 2.9 times median household income, nationwide.  Three years ago, just before the housing bubble burst, this ratio was 4.5 times income.  Add in the fact that interest rates are much lower today than they were two decades ago and housing is even more affordable.

Another important trend locally is that that available home inventory dropped 20.54 percent, with March inventory of homes in Denver the lowest in 6 years.  This trend will likely cause an increase in the demand for those fewer properties on the market, with a subsequent increase in buyer activity.  Denver has outperformed most of the nation in the housing market, in large part due to Colorado’s above average population growth and job stability.  Maybe things aren’t as bad as we thought!

However, 2009 has begun with some rays of hope.  At the end of 2008, Denver’s home-resale market showed signs of finding its balance, with the supply of unsold homes falling sharply and homes selling a little faster.  Hopefully, last year’s 20.3 percent decrease in the inventory of unsold homes will be met by increased demand from buyers lured by lower prices and mortgage rates.  Actually, median single family home prices rose between November and December, although remaining down from December of 2007.  Financing difficulties help explain why the number of closings fell 3.9 percent last year, despite a 1.6 percent increase in the number of homes put under contract.  The recent decline in 30-year mortgage interest rates from more than 6 percent to about 5 percent should spur a slow, gradual recovery in the housing market this year, ahead of the rest of the country.

A recent quarterly report issued by PMI Mortgage Insurance Co., said the Denver-Aurora metro area ranks 10th among the cities that are expected to have stable housing prices between the third quarter of 2008 and the same quarter of 2010.  The index shows Denver bucking a national trend toward an increased risk of lower home prices, where 369 of 381 of the nation’s metropolitan areas have a rising risk of lower prices.  With the national press reporting Denver as being a low-risk area for declining values, this report could help accelerate an expected surge of real estate investments by savvy buyers looking for bargains.  The current housing market increasingly resembles the late 1980’s, when the market was beginning to recover from a hammering.  The smart investors saw the bottom of the market and began buying real estate in a big way.

And, first-time buyers are having it best of all.  A program provided by the U.S. Department of Housing and Urban Development lets first-time buyers put down just $100 on HUD-designated properties.  As a buyer’s market, with a lot of inventory, many sellers are willing to help with closing costs.  Also, first-time buyers should check out a new one-time tax credit made available last year.  In addition, the Colorado Housing and Finance Authority can provide both financing and educational tools in the first time home-buying process.

So, lets all hope that the encouraging signs at the start of 2009 indicate a turning point in the area’s economic future.  And, remember, please contact us if there is anything we can do to make your next home buying or home selling experience the best it can be!

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.

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.

The average price of a single-family home sold in October was $250,172, down 13.6 percent from $289,754 in October 2007, but there were 4,504 homes placed under contract, down only 3 percent from 4,645 in October 2007.

There were some notable exceptions to downward trends in price and closed sales of single family homes.  In the South Suburban East area, closed sales were up 11.1 percent in October over last year, and the average price increased 6.0 percent from $499,455 to $529,217.  Similarly, the South Suburban Central marked showed a 16.0 percent increase in closed sales and a 2.6 percent increase in average price from October of last year from $280,097 to $287,341.  In the Highlands Ranch/Lone Tree area, sales were down 10.6 percent year over year, but average price was up 2.8 percent to $350,513.  Even with the decrease in number of sales, Highlands Ranch/Lone Tree has only 4.3 months’ worth of inventory.

Experts anticipate the real estate market will not reach bottom until the end of next October, with the biggest barrier to trying to take advantage of low home prices being the difficulties in obtaining a mortgage.  The government will need to step in quickly to prevent further erosion of housing prices and stop the foreclosure crisis sweeping the nation.

Looking for mortgage rates to decline a lot? I don't like always being the
messenger of bad news, but someone has to do it. Long term interest rates,
including mortgages, do have an outside chance of falling a little from the current
levels but not enough that will be noticeable in any big way. Inflation fears are
still there and as long as investors normally attracted to long term debt
(insurance companies, pension funds and others that historically need to buy long
term debt) to match liabilities with long assets have little reason now to step in
on the 10 yr note. Inflation concerns won't go away as long as commodity prices
increase. Core inflation is a meager 2.2%, but the overall inflation rate is about
3.4%. Never mind that the core rate (ex food and energy) is low; markets will begin
to look at the overall rate as more an indication of inflation. Even just focusing
on the core rate; at 2.2% and the yield on the current 10 yr yield at 3.65% leaves
a real rate of return at a miniscule 1.45% and that is not enough to attract buyers
in any major way.

• 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.

- 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.