If you're planning to buy a home in Denver in the next 6 months you ought to be able to buy for at least 97% off list price. If the house has just been listed it will eventually sell, but on average at a price 93% less than the original list price. It could take awhile for starry-eyed sellers to realize their home may be priced too high. On the other hand, good houses in good condition in good locations may even require an offer of asking price or more. A good Buyer's Agent can help you assess the many factors that go into arriving at a good offer price.

Median prices for detached single-family homes are up slightly from July by .98%. (Median price is a better gauge of the market's strength than average price which can be skewed by a few high priced sales.) Average days on market has increased from 90 in July to 92 in August, showing a slight seasonal shift. The highest days on market was 125 in February, the lowest was 90 in July.

Condos fared worse, dropping 3.48% in median price in August to $152,500 from $158,000 in July. The average price dropped even more by 5.26%. Days on market improved to 102 in August from 112 in July. The highest average days on market was in January with 131.

Percent of sale price to list price dropped a percent in August to 97% from 98% in July for detached single-family homes, and rose to 98% in August from 97% in July for condos. Neither shows much of a change. Overall days on market for both condos and detached single-family homes was 94 for August compared to 120 in January and 125 in February. Denver's unusually harsh winter took a toll both on how long it took to sell and prices. Original list price for both condos and single-family homes during January and February showed high hopes by sellers, but a grimmer reality. Sellers were getting on average 87% of what they were asking in February. By August that figure had improved to 93% of list price for both condos and detached single-family homes.

A high number of short sales (where lenders take less than the homeowner owes on the mortgage) and foreclosures have impacted the lower priced neighborhoods. Home prices in higher priced neighborhoods haven't been as negatively impacted. The Denver Post cites the Stapleton neighborhood, a new urban retail/residential area. Average prices in the Stapleton neighborhood are $449,000, but in the last year only 2% of sales were short sales or foreclosures. By contrast the Del Mar neighborhood in Aurora where the average price is $117,000, 71% of all sales were short sales or foreclosures. This once-attractive neighborhood now is laced with run-down homes sitting empty either with a For Sale or For Rent sign in the front yard.

What does it all mean? The Denver market isn't nearly as dismal as the headlines would have you believe. Compared to the national scene, Denver prices haven't shown as steep a drop, and in many cases home values are appreciating significantly. In neighborhoods where home prices on average are $250,000 or less, overall home prices are dropping according to a September 4, 2007, article in the Denver Post. But in higher priced neighborhoods prices are steady or rising. Some neighborhoods have shown a healthy increase over the last year. University Park, where the average price is $718,777, has shown a 23.9% increase. Hilltop, another pricey Denver neighborhood with an average price of $920,146 experienced a 24.4% increase, but homes in most Denver metro neighborhoods are flat, either dropping slightly or appreciating slightly.

A single exception is Denver's Jefferson Park neighborhood with an average price of $247,454. Jefferson Park is a mix of old and new, an old neighborhood in the process of gentrification, with new townhomes, new condos, just a few blocks from Invesco Field at Mile High (to us oldtimers, it's still Mile High Stadium), LoDo, Elitch's, the Pepsi Center, Coors Field, and other downtown attractions. River Clay has one of the more interesting projects going on in the private market in Denver. It's a green condo building with a mix of affordable housing and luxury units. One of my clients, returnng to Denver from the Pacific Northwest, bought one of the nicest units for $543,600. When these condos are resold (they're under construction now) the neighborhood's value will increase. Other projects are scheduled for this newest of downtown Denver's hottest neighborhoods.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. It costs 40 percent less to live in Denver than in San Jose; 34 per cent less than in San Diego; 43 per cent less than in San Francisco; and 14 per cent less than Seattle. If you live on the east coast, it will cost 15 per cent less than in Baltimore; 28 per cent less than in Boston; 50 per cent less than in New York; 14 percent less than in Miami

For buyers coming from the south and the midwest, Denver could cost more. It costs 2 per cent more in Denver than in Atlanta; 14 per cent more than in Houston; 7 per cent more than in Dallas; 6 per cent more than in Dayton, Ohio; and 11 per cent more than in Minneapolis. But living in Denver still costs 3 per cent less than in Detroit; 20% less than in Philadelphia; 1.5 per cent less than in Cleveland, and 1.5 per cent less than in Chicago.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like http://www.bestplaces.net, http://www.bankrate.com/brm/movecalc.asp, or http://cgi.money.cnn.com/tools/costofliving/costofliving.html.

Having an Exclusive Buyers Agent to find the best buys will shore up your buying ability by representing your best interests - finding the best home at the lowest possible price, and saving you time and hassles. See client references at http://www.buyers-advantage.net/happy-clients.html. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your new home in Denver.