For the first time since August 2007, average days on market dropped to 94 in June, three days fewer than May and 17 days fewer than January and February. Housing inventory dropped by 8.7% from May, and average prices increased from May by 4.32% to $267,005. Prices still are down by 12.19% from last year this time . But decreasing days on market, decreasing inventory, and rising prices in June indicate buyers' growing interest in purchasing as prices bottomed out in May.

Foreclosures were down in the second quarter from the first quarter of 2008 by 7.5%, though still higher than last year this time by 15.6%.

June median prices for single family homes rose slightly by 1.5% over May to $230,000. Condo median prices rose by 2.3% to

$148,345. Year over year median prices dipped by 12.5% for single family homes, and by 6.1% for condos.

Denver's economy is still outpacing the nation, with job growth predicted at 1.5% for the remainder of 2008 compared to the national average of from .5% to 1%. It's still a good time to buy Denver real estate.

A question asked by many of my buyers is "If I buy now, what about declining values? Will my home be worth less when it comes time to sell it?" The answer varies depending on how long you stay in your new home.
 
On average buyers stay in their homes about 5 years before selling according to independent real estate broker, Gary Bauer (Bauer issues a monthly market report used by the Denver dailies) is widely regarded in Denver real estate circles as a market expert. In a report in the Rocky Mountain News by Rob Reuteman (4/19/08), Bauer is quoted on the issue. He says, "If I bought my home a year ago for $200,000, and I had to sell for $180,000, I'd be upset. If I'm staying in the Denver market I take $180,000 and buy a house that would have cost me $200,000 a year ago. But I'd still have a little feeling that I really didn't do so well. If I were that individual five years ago, my average appreciation would be 39 percent. Would I be concerned about a 10 percent drop in price today? I don't think so. I would have bought it for $130,000 and sold it for $180,000."

The Denver Post has a very useful interactive map of home values across the metro area. You'll be able to look at values by neighborhood, discover whether values are rising or declining and much more.

Interest rates are still low (conventional loans were at 6.500% for well-qualified buyers as of July 8, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable.

The Denver market is not in the same situation as many cities. We're still riding out the effects of the mortgage crisis which led to so many foreclosures, but values haven't dropped nearly as much as the rest of the country.

Many parts of the country have suffered a double whammy with the real estate bubble bursting together with the number of foreclosures rising which put a downward push on prices. Denver's bubble burst in 2001, but values remained steady until 2007 when they began to drop. 2006 values increased an average of 2.7%, while values at the end of 2007 had dropped by 2%, a difference of 4.7%.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNNMoney.com it costs 51.1%% less to live in Denver than in San Jose; 43.8% less than in San Diego; 66.6% less than in San Francisco; and 12.9% less than Seattle. If you live in the east, it will cost 37.6% less than in Washington, D.C.; 32.8% less than in Boston; 101.9% less than in New York; 22% less than in Philadelphia.

For buyers coming from the south and the midwest, Denver could cost more. It costs 4.9% more in Denver than in Atlanta; 12.8% more than in Houston; 8% more than in Dallas; 8.3% more than in Dayton, Ohio; 5.2% more than in Rochester, MN, and 10% more than in Boise. But living in Denver still costs 10.7% less than in Chicago, 15.1% percent less than in Portland, and a whopping 49.3% less than in Los Angeles.

You'll need to do your due diligence to compare cost of living between your city and Denver at websites like Sperling's Best Places, BankRate's moving calculator,  or CNNMoney's Cost of Living calculator.

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 the Buyers Advantage website. Phone numbers available upon request. Call Judith Clausen now at 303-587-3509 to help you find your next house.