Denver Real Estate Update (September 2008)
TeamCox Realtors has been examining the Denver metro area’s real estate statistics from August, and there is one thing that stands out – housing inventory in the Denver real estate market is declining. According to statistics recently released by Metrolist, the number of homes for sale in the Denver area has decreased by a whopping 20 percent from last year, and declined 4 percent from last month. This makes us optimistic about the state of the Denver real estate market.
You might be wondering why declining inventory is a positive thing? While it isn’t good news if you are a prospective homebuyer, it is great news for the overall health of the Denver housing market. Think about it: as housing inventory declines, there is less inventory for buyers to chose from, which results in less competition for sellers. This phenomenon will drive ultimately Denver home prices up, and speed up the market’s recovery. The average sold price of a Denver home in August declined slightly last month to $261,107. This is likely the result of the large number of foreclosures in the market, which is only temporary.
Another positive development is that mortgage rates have declined since the government takeover of Fannie Mae and Freddie Mac. It will now be easier for homebuyers to find and qualify for a loan, which will further spark the Denver real estate market. It is unclear how long these lower rates will linger, so it is a good idea to purchase or refinance your home as soon as possible. We’ve been stressing for months that now is the time to buy a home in Denver. If you wait for the “all-clear” that the market has completely recovered, it will be too late to purchase your dream home at the best price. Prices will have gone up, and your bargaining power will be greatly diminished.
For more information on purchasing a home in the Denver real estate market, please contact TeamCox Realtors at 303-400-6060.
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