Buyers are in the catbird seat again this month, that is, if they can get a mortgage. Prices take a slide but credit is still tight even though rates are the best they've been in awhile.

It's too early to tell, but Denver's real estate market may be showing signs of life. More homes sold in December than sold either in December of 2007 or in November 2008. The uptick over 2007 was slight, just .47%, But the gain over November was a surprising 10.75%. For single family homes the mix of sold properties was evenly split between homes selling under $200,000 and homes selling over $200,000. For condos and townhomes the split was more stark, 76% selling under $200,000 and only a quarter selling above $200,000. Generally condos and townhomes sell at a lower price than do single family homes. Average sold price for condos is $162,770, while for single family homes the average is $240,945. For all homes the time it took to sell was down both from last year and from last month.

The total number of homes on the market in December was lower than it has been since 2002, the year after the Denver market started to decline. That's a good sign, as is total sold activity at the end of 2008. Fewer foreclosed homes were on the market in December, indicating a possible turnaround in the availability of cheap homes. The Colorado Division of Housing predicts that when year end figures are in, the number of foreclosures for all of 2008 will decline by about 13%. With a broader mix of homes on the market prices may begin to rise.

Buyers may be encouraged to begin searching for homes with interest rates below 5% and lenders a bit more willing to lend. But Buyers will still have to have excellent credit and a sizeable down payment.

The only fly in the ointment is the Colorado economy and the possibility of more job losses leading to more foreclosures. Unemployment in the Denver metro area rose .2% in December to 5.9%, which is less than the national unemployment rate of 7.2%, but still high. However, the Monthly Economic Summary published by the Metro Denver Economic Development Corporation titles its January 2009 report, Strong long-term prospects will support a solid recovery for Metro Denver's economy, a very good sign for Buyers looking to buy in the Denver metro real estate market.

But there are some sweet spots for sellers too. As I've said before, good homes in good shape in good neighborhoods sell quickly, even in this slow market. And if you're looking for a good deal on a foreclosure - either pre- (short sale) or post (bank owned), you may be competing with several other offers forcing you to pay above asking price if you really want the home. For either resale or distressed sale homes, the basic rules of economics still apply. Good houses in great shape in desirable locations command the attention of multiple buyers in good times and bad. What's in short supply these days is the total number of buyers. But take note that some may be looking at the very same house you want.

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 a 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. The map hasn't been updated since the end of June 2008, but it's a useful guide nonetheless.

Interest rates are historically low. Conventional loans were at 4.750% for a loan value of $300,000, and 5.000% for a loan value of $140,000; FHA loans of $140,000 were 5.000% and $300,000 were 4.875% for well-qualified buyers as of January 12, 2009, from our preferred lender, Rate One, The Mortgage People. Homes are much more affordable. Denver's economy is steadier than the rest of the nation, and while unemployment has risen to 5.7%, jobs are still 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.