Welcome to the February edition of the 2010 Denver Real Estate Market Newsletter. The primary purpose of this newsletter is to keep you informed of the real estate market in Denver.
This Month’s Newsletter Highlights:
- Denver home prices show an annual increase for the 1st time in 3 years Read More
- Forbes Magazine Lists Denver as one of the “Top Ten Cities Where It’s Smarter to Buy”. Economists predict home prices for these locales will go up the most over the next five years. Read More
- Back by popular demand, Paul’s Economic Stimulus Plan! See the Tidbits section below.
Please feel free to contact me anytime with real estate questions you may have. Also, if you know someone who is thinking about buying or selling a home, please call to let me know. Referrals are the core of my business and are always appreciated.
Tidbits
Insight of a True Leader
‘A true leader is a servant of those he/she leads. If others question your leadership, you should question your service. If others are questioning your service, you aren’t leading. Leadership is a skill earned through experience. Leading others is a right granted by those being lead. I am prepared to lead or follow. In the absence of leadership I will step forward and lead. In the presence of true leadership, I will step forward and follow. In either case, I will serve my people, my country, and my God. I will lead from the front. I will serve from the heart. Leader is not a name or a title I give myself. It is what I am. Are you a leader?’ (Tony Griffin, Friend and Mentor)
‘There’s an (Free) App for that’
View homes for sale, as you walk or drive through any neighborhood, using these FREE iPhone applications. The iPhone GPS technology pinpoints your location and displays real-time real estate information and data as you move. Go to the App Store on your iPhone and search for these great FREE apps!
- Realtor.com – Provides current, up to date list of homes for sale in your neighborhood. Each property displayed includes photos, property details and pricing. Learn More
- Zillow.com – See the “Zestimate” value, homes for sale, and recently sold home for any neighborhood. Learn More
- BestHome4Me – Search homes for sale plus learn about neighborhood demographics, population characteristics, and places of interest (Grocery Stores, Restaurants, Bars, Coffee Shops, Libraries, Parks, Golf Courses, Fitness Centers and more).
What you can find on Paul’s Real Estate Blog This Month:
- Why do interest rates change daily? Read More
- 2010 Survival Handbook Read More
- This article published last year is worthy of another look. Down payment assistance is available to qualified borrows through community programs such as Colorado Home and Finance Authority (CHFA). These programs are designed to assist homebuyers with low interest loans that allow borrowers to finance a portion or all of the down payment and/or closing costs. Read More
Colorado Foreclosure Hotline
Are you concerned about missed mortgage payments, delinquent payments or possible foreclosure? Contact the ColoradoForeclosureHotline.org or call 877-601-HOPE. There were 39,915 foreclosures filed in Colorado in 2007, four out of five homeowners who met with a Colorado Foreclosure Hotline housing counselor successfully avoided foreclosure. Take action now!
Paul’s Economic Stimulus Plan
- 10% off coupon to Lowe’s Building Center. Through a special relationship with the National Association of Realtor’s I am able to provide my very special guests with a 10% off coupon to Lowe’s Building Center. Simply reply to this email if interested.
- Kids Eat Free in Douglas County Read More
- Kids Eat Free in Denver Read More
Free Offer to First Time Homebuyers Are you a first time homebuyer or do you know someone who is considering buying their first home? Let me help you learn more about the home buying process. Reply to this post and I’ll send you a free copy of Your First Home by Gary Keller, Chairman of Keller Williams Realty International.
Mortgage News
The cost to finance using Federal Housing Administration (FHA) guaranteed loans are planned to increase April 5th! The FHA will increase the Up-Front Mortgage Insurance Premium (MIP) from 1.75% up to 2.25%.
FHA to provide early relief to struggling homeowners. Homeowners with FHA-insured mortgage loans who are experiencing financial hardship are now eligible for assistance before they fall behind on their mortgage payments by permanently reducing the payment. Read More
Real Estate News
Denver again led metro area in home sales in 2009 though the number of sales declined from 2008 Read More
Metro Denver’s apartment vacancy rate of 7.7% nearly unchanged from 2008; average rents down from previous year. Read More
Completed home foreclosures in Colorado in 2009 declined 4.1% compared to 2008 and declined 18.4% from the peak year of 2007. Fewer foreclosure filings resulted in a foreclosure sale as home owners refinanced, modified loans or executed a short sale. The states foreclosure counseling program, including Colorado Foreclosure Hotline, have helped some 16,000 households avoid foreclosure since 2006. Read More
Colorado’s foreclosure filing ranking among all states fell from 5th to 10th. The foreclosure rate, the percentage of homes in some stage of foreclosure, was 2.37 percent in 2009, down slightly from 2008’s rate of 2.41 percent. Read More
January 2010 Real Estate Market Trends
| JANUARY 2010 | % CHANGE vs Prior Month | % CHANGE vs Year Ago |
| SINGLE FAMILY (Residential and Condo) | | | |
| Homes for sale | 17,465 | 6.13 | -11.56 |
| Homes under contract | 3,690 | 21.86 | -3.68 |
| Homes Sold | 2,353 | -20.48 | -4.70 |
| Average days on market | 89 | -0.10 | -11.71 |
| Average Sold Price | $238,155 | -6.93 | 11.64 |
| | | |
| RESIDENTIAL | | | |
| Homes for sale | 13,030 | 6.25 | -13.40 |
| Homes under contract | 2,883 | 21.59 | -8.01 |
| Homes Sold | 1,841 | -20.92 | -5.25 |
| Average days on market | 90 | 2.27 | -9.09 |
| Average Sold Price | $260,530 | -7.53 | 12.84 |
| | | |
| CONDOMINIUM | | | |
| Homes for sale | 4,435 | 5.77 | -5.66 |
| Homes under contract | 807 | 22.83 | 15.78 |
| Homes sold | 512 | -18.86 | -2.66 |
| Average days on market | 85 | -8.60 | -20.56 |
| Average sold price | $157,701 | -1.68 | 6.19 |
2009 Inventory – Months of Supply
The inventory of single family residential homes for sale has dropped 13.4% from January 2009 and 30.4% from the January peak in 2008. Upon taking a closer look at the table below you will see that Denver has two distinct real estate markets and one in transition. Homes priced $250,000 and below, typically the entry point for many first time home buyers, has only 3.1 months of inventory (supply). This market shows signs of recovery as a result of 1) the First Time Home Buyer Tax Credit, 2) increased affordability and 3) record low interest rates. Homes priced $500,000 and above have 11.1++ months of inventory. The typical rule of thumb is that a market is in balance or ‘in transition’ when the supply of homes is 5 or 6 months. Homes priced between $250,000 and $500,000 fall within this range. Don’t forget, homes in all price ranges are still selling!
2009 Inventory - Months of Supply
| Total Active
(January 4, 2010) | Total Sold
for 2009 | Months Supply |
| RESIDENTIAL Units | | | |
| 0- 250,000 | 4762 | 18182 | 3.1 months |
| $250,001-$500,000 | 4639 | 9898 | 5.6 months |
| $500,001-$750,000 | 1472 | 1597 | 11.1 months |
| $750,001-$1,000,000 | 692 | 470 | 17.7 months |
| $1,000,001-$1,500,000 | 464 | 217 | 25.7 months |
| $1,500,001-$2,000,000 | 256 | 68 | 45.2 months |
| $2,000,001-$2,500,001 | 118 | 28 | 50.6 months |
| $2,500,001-$3,000,000 | 90 | 16 | 67.5 months |
| $3,000,001+ | 144 | 16 | 108.0 months |
| | | |
| CONDO Units | | | |
| 0-$250,000 | 2707 | 7008 | 4.6 months |
| $250,001-$500,000 | 975 | 914 | 12.8 months |
| $500,001-$750,000 | 246 | 110 | 26.8 months |
| $750,001-$1,000,000 | 100 | 26 | 46.2 months |
| $1,000,001-$1,500,000 | 66 | 12 | 66.0 months |
| $1,500,001-$2,000,000 | 34 | 4 | 102.0 months |
| $2,000,001-$$2,500,000 | 10 | 2 | 60.0 months |
| $2,500,001-$3,000,000 | 1 | 0 | no sales |
| $3,000,001+ | 5 | 0 | no sales |
Economic News
Colorado jobless rate jumps to 7.5% Read More
Many of the nation’s largest retailers with stores in Colorado including Macy’s, Target and more, reported modest improvement in their January sales from a year earlier. Read More
The Denver area lost 39,700 jobs in 2009 or 3.2 percent of its total employment. Read More
Colorado new-car registrations down 28% in 2009. Read More
Other News
DIA air fares drop 16% in Q3 from 2008, down 37% from 2001 Read More
Denver picked as potential site for soccer’s World Cup. Read More
Denver passes new rules for medical-marijuana sellers. Read More
Centura Health to build hospital in Castle Rock. Read More
Joe Nacchio, former Qwest CEO, makes Time’s list of Top 10 ‘Crooked CEOs’. Read More
Appliance World shutters Denver-area stores. Read More
Wells Fargo offers text banking to all its customers. Read More
Safeway and King Soopers employees approve 4 year contract. Read More
Colorado Capitol’s dome named to ‘most endangered places’ list. Read More
DIA saw 2.1% passenger drop in 2009, but it’s still 2nd-busiest year ever Read More
Thank you again for your business and referrals.
If you or someone you know is thinking about buying or selling a home any time in the next year, please call to let me know. It would be my pleasure to contact and work with your referral. My commitment to you is to treat them with the utmost care as they work towards buying or selling a home.
When searching Homes For Sale anywhere in the Denver metro area use this link, Interactive Map-Based Home Search. This interactive, map-based home search tool makes looking for homes fun and easy. If you are interested in a specific neighborhood, whether it is your current neighborhood or the one that you hope to move to someday, this site can send you e-mail notifications when new homes come onto the market. Happy home searching!
Looking for the most current, accurate foreclosure data on the market? The Search for Homes page found on the MetroDenverRealty.com web site now has a “Foreclosures” radio button. (The radio button can be found in the ‘Search For:” section under Search Tools. Use this link to see an example if you’re having difficulty finding the radio button.)
Would you like to get an up-to-the minute report of homes sold and homes currently available in your neighborhood? Go to www.MetroDenverRealty.com and click on the Market Snapshot link.
Please call with any questions or comments. It would be my pleasure to assist you with all of your real estate needs.