Though still down considerably from 2008, Denver’s real estate market is picking up. February’s median price for a single family home is up 5.8% from January to $192,000, after the usual seasonal downturn in January. The average price of a single family home is $218,000, up 6% from January. For condos the news isn’t quite as bright. Sales were off 9.5% from January and the average price in February was down 7% to $138,2239, while median price rose 4.2% to $117,725.

Gary Bauer, independent real estate expert in Denver with the Genesis group, is optimistic for the rest of 2009, predicting a good spring market. Though many parts of the rest of the nation is looking at severe real estate price drops, since Denver’s market didn’t go through the highly inflated price bubble experienced elsewhere, Denver is one of the few places in the country where real estate is remarkably stable, particularly when looking at year over year data.

View Channel 9 interview with real estate expert, Gary Bauer .

The recently released Case Shiller Housing Index shows a year over year average price drop of 18.5% nationally. But of the 20 metropolitan areas measured, Denver showed the smallest decline, 4.0%, from 2007 to 2008.

The OFHEO (Federal Housing Finance Agency) report for 2008 shows that Denver's values decreased by only -0.71%, 111th of 292 Metropolitan Statistical Areas (Denver-Aurora). In the fourth quarter of 2008 values actually increased by 0.77%.

Foreclosure filings dropped by 2% in 2008 according to the Colorado Division of Housing. Completed foreclosures dropped 16% from 2007.

Denver's drop in values began in 2001, unlike most U.S. cities where the drop didn't begin until 2003, and then only in cities showing the greatest increase in prices during the early 2000s. Denver's increases took place in the 1990s and prices did not drop steeply from 2001 to late 2008.

More houses went under contract in February than in January by 9.2%, following a trend beginning in December. The mix of single family residences sold under $200,000 in February was 52.4% and over $200,000 was 47.5%. For condos the split was stark, indicating falling prices. Only 18.2% of sold condos were over $200,000 while 81.8% were under $200,000.

For buyers, the time is exceptionally opportune, especially given recent interest rate drops. And for first-time home buyers (buyers who haven’t owned a home for the last three years) an $8,000 federal tax credit should help sweeten the pot. You’ll have to buy before the end of the year though.

Single family homes priced well, in good condition, in good locations were staying on the market fewer days than the average of 107, and were selling in 30 days or less for 99.01% of list price. Homes staying on the market over 90 days sold at 94.87% of list price. If you're a seller you'll want to price your home well and make sure it's in good condition, attractively staged. If you're a buyer and you want to buy a move-in ready home in a good location, be prepared to pay close to list price. My experience over the last month to month and a half shows that premium homes are selling, many with more than one offer, and some even at above list price. Denver’s real estate market isn't uniformly declining, contrary to what you may hear on the news or read on the internet or in the newspaper.

According to the Denver Economic Development Council, the outlook for Denver's economy in 2009 is better than average. Denver's unemployment rate at the end of February was 6.6, considerably better than the national unemployment rate of 8.1%.

The jobs outlook is better, too, for the Denver Metro area. According to the most recent Manpower Employment Outlook Survey for the area issued on March 10th, 10% of employers expect to hire more employees, 13% expect to reduce their work force, 73% hope to maintain their current work force, and 4% are uncertain. Sectors hoping to hire include Information, Financial Activities, Professional and Business Services, and Leisure and Hospitality services. Sectors expecting job losses are manufacturing, leisure-hospitality, and government. Sectors where employers plan to reduce jobs are Construction, Durable Goods Manufacturing, Nondurable Goods Manufacturing, Transportation & Utilities and Education & Health Services. However, the recent American Recovery and Reinvestment Act will add jobs to Colorado’s Construction sector. 59,000 new jobs are expected in Colorado due to the measure.

The Denver metro area'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, metro 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.