Judith Clausen, Exclusive Buyer's Agent

Buyers continue to snap up Denver homes at bargain prices. 4,282 homes (both single family and condo/townhome) were sold in October compared with 4,265 in September, 4,542 in August, and 5,123 in July. Median prices for October were $206,000 for single family homes, a drop of $10,000 from September, and $130,300 for condos/townhomes a drop of $9,000 from September.

Home prices were 12.2% lower in October 2008 than in October 2007, which in turn was 2.67% lower than October 2006. The average price for single family homes and condo/townhomes combined was $232,284 compared to $265,232 in October of 2007.

Housing inventory continues to slide as sellers keep homes off the market. Prices of current listings continue to fall because buyers are in short supply. The recent global financial crisis and credit crunch has affected what looked to be a stable market in September, the first hopeful sign of a housing recovery in the Denver metro area. The area's real estate market is now expected to bottom out sometime in the future, perhaps as far out as a year or 18 months from now.

That leaves an incredible opportunity for buyers looking for Denver homes. Interest rates have steadily fallen, making more homes affordable. The only glitch is that buyers may have to come up with more cash down and have excellent credit in order to qualify for financing.

Denver is in a much better position than many U. S. cities. The S & P/Case-Shiller report for August 2008 (published October 28th) showed a very slight decrease in home prices from July, the first decrease in five months. In July Denver was one of only two cities out of 20 measured nationally that showed any increase. Only Minneapolis showed a greater increase (1.8%).

But the continuing loss in value from last year is striking. After the economic meltdown earlier this year local economists are predicting a continuing slide in prices for at least another year.

On the whole Denver's economy is showing a slow-down, but is still in better shape than many other U. S. cities. Job growth is stable, and unemployment through September was 5.4%, less than the U. S. rate of 6.1%. Governor Bill Ritter predicts that unemployment will slowly drop through 2009, and believes the Denver economy is relatively strong. A report issued by the Governor's office on September 19th shows that "Colorado's economy…is more resilient and perhaps better poised to rebound from the current national financial turmoil than the national economy," noting that "Colorado has lower unemployment, greater job growth and lower inflation than the nation overall."

Another interesting fact indicating the strength of Denver's economy is that its credit rating was recently upgraded to AAA from Standard & Poor's Rating Service, citing its "role as the economic center for the Colorado Front Range — with a diverse economy and reliant per-capita property values" (Denver Post, 9/9/08). And Wells Fargo, one of Colorado's largest lenders has just upgraded their ratings for Denver housing from "distressed" to "stable." In an article in Denver's Rocky Mountain News (9/16/08) Thomas Thibodeau, academic director for the CU Real Estate Center in Boulder was quoted as saying that "The housing market here is vastly different than the rest of the U.S. I think the Denver housing market has turned the corner and is on the way to recovery."

Two large renewable energy projects are slated for the metro area. Rentech recently opened a demonstration plant in Commerce City to produce synthetic jet and diesel fuel. And Vesta Wind Systems announced plans to build a wind turbine blade manufacturing plant in Brighton. The two projects combined could bring as many as 1,800 new jobs to the Brighton/Commerce City area. Colorado is becoming internationally known as a center for renewable energy and aerospace development activity. "Metro Denver's dynamic and innovative industry base continues to support the region's economy through challenging times," stated Tom Clark, executive vice president of the Metro Denver Economic Development Corporation.

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 and is widely regarded in Denver real estate circles as a market expert.) In an April 2008 report in the Rocky Mountain News by Rob Reuteman, 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 updated their very useful interactive map of home values across the metro area. You can look at values by neighborhood, discover whether values are rising or declining and much more.

Interest rates are still low (conventional loans were at 6.125% for well-qualified buyers as of November 10, 2008 from our preferred lender, Rate One, The Mortgage People). Homes are more affordable. Denver's economy is steady and jobs are expected to increase this year.

Denver's cost of living makes it an easy choice over higher cost areas like both coasts. According to CNN/Money.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, Bank Rate or CNN/Money.

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


Approximate Location Boundaries: Denver Metro Area

Location Characteristics: Denver's an exciting place to live. Winter, summer, spring or fall -- there's always something special to do in the Denver area. Cultural amenities include the Denver Center for the Performing Arts which houses the Colorado Ballet, the Denver Symphony, and the Denver Center Theater. Art galleries, the Denver Museum of Science and Nature, over 90 golf courses, sophisticated shopping centers, the Denver Zoo -- the list goes on and on. Denver is a large urban area close at hand to some of the most beautiful country in the U.S. Ski areas are just hours away. Fly fishing, hiking, mountain climbing and much more offer spring, summer and fall recreation in the nearby Rocky Mountains. Quality of life in the Denver area is its biggest draw.

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About Judith Clausen, Broker/Owner:
I represent Buyers only. My hallmark in assisting buyers is to provide timely, energetic and honest service. Check out my website at www.Buyers-Advantage.net for client feedback. When asked to fill out a Customer Satisfaction Survey one recent client, "I'll give you all tens because you're worth it!!"

If you're planning to buy in the next six months go to my website (www.Buyers-Advantage.net) and click on Home Search to look for homes in the Denver area. You can save your searches, and return as often as you want. And I'm always available to answer any of your real estate questions. Just email me at Judith@Buyers-Advantage.net or call direct at 303-587-3509.