Denver Real Estate Market Update (January 2009)
I don’t know anyone who did not breathe a sigh of relief when the calendar turned from 2008 to 2009 a few weeks ago. The fourth quarter of 2008 was a bit of a train wreck, bringing financial news that was so grim that we could not peel our eyes away from the reports.With the new year comes the question of what to expect in the Denver real estate market in 2009? TeamCox Realtors has several reasons to believe that things will improve this year:· The funds will start flowing again! The Denver area has weathered the national economic downturn quite well, and should lead the charge in its recovery. The Denver real estate market faced a major obstacle during the last half of 2008 – a lack of mortgage financing available to buyers. The Feds announced in November that they would buy approximately $500 billion in mortgage-backed securities. Once this happens, funds should start flowing again, and the Denver metro housing market should be in a better position than most of the rest of the country.
· It is not risky to buy a home in Denver! The Denver housing market is holding its value well. Just last week, the PMI Mortgage Insurance Co. released a national report, revealing that home prices in the Denver-Aurora metropolitan area have a less than 1 percent chance of declining in value over the next two years. That’s pretty good odds even in Vegas! The Denver real estate market ranks among the least risky markets in the country.
· Denver homes are affordable! PMI’s report also revealed that Denver homes in the third quarter of 2008 were 15 percent more affordable than they were in 1995. Affordability is based on several factors, including income, housing prices, and mortgage rates.· Interest rates are LOW! The other piece of good news is that interest rates continue to fall, settling just below the five percent mark last week.The Denver real estate market will come alive, as the weather warms up, so don’t miss an opportunity of a lifetime to purchase your dream home. For more information on the state of the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.
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