Lawrence Yun spoke to area REALTORS® yesterday (January 16, 2008) at a meeting of the Jefferson County Association of REALTORS® in Lakewood, Colorado, citing "irrational pessimism" on the part of buyers for what may be holding back a recovery in the Denver real estate market.

Denver has been the canary in the coal mine since 1991 when it began to recover from the housing slump beginning in the 1980s.  Double-digit increases in value in the 1990s followed the S & L crisis, presaging a recovering housing market throughout the early 2000s in the rest of the country.  The dot com failures of the early 2000s began a downturn in the Denver real estate market in 2001, much earlier than nationally.  Prices stayed steady from 2001 to 2006, and only began dropping in the last quarter of 2007.  The drop has been minimal compared to the rest of the country, and isn't expected to last.

Is that canary still a reliable precursor for the rest of the country?  Only time will tell.

In early 2008 conditions are optimal for Denver home buyers.  Interest rates are at a 45 year low point, prices are lower than they've been in recent months, inventory is high.  The "credit crunch" doesn't apply to home buyers who have good credit and a down payment. Colorado just posted the fourth straight annual gain in jobs and the lowest unemployment figures in years (3.8%).  Job growth for 2008 is expected to be 2.4%. Unemployment in Colorado is lower than the nation at 4.5% for December.  Now is the time to take those home buying plans off the back burner while sellers are making hefty concessions.

If you're thinking about buying a home in Denver, be sure to hire your own Denver Exclusive Buyer's Agent.  The fee comes from the transaction at closing paid by the listing agent.  Sellers have representation, and so should you.  Call Judith Clausen, Broker/Owner of Buyers Advantage Real Estate of Metro Denver at 303-587-3509 or email Judith@Buyers-Advantage.net to see how you can save money and avoid the pitfalls of buying a metro Denver home.