So how IS the market? Really?

It's the first question my clients want answered. It's even what most of my friends and acquaintances ask me shortly after catching up on our other news. How do you see the market in your neighborhood? Why do you come to that conclusion? How does your area compare to the rest of the Metro area? For that, keep reading...

As active realtors with buyers and sellers in the fray, Kent and I decided to report what really happened to real estate in 2008 in the Denver Metro market. Tired of conflicting reports that skewed the data, we put together MLS data to measure the pulse of the market in 9 areas: Denver NE, NW, SW, SE; Suburban NE, NW, SW, SE; Douglas county. We graphed key monthly data and annual data back to 2007. Yes, rumors are true that some neighborhoods actually showed a slight increase in average sales price last year! Yes, rumors are true that some neighborhoods actually showed more than a 25% drop in average sales price last year! Yes, some areas are showing a balance between demand and supply, while others are strongly a buyers' market. More important than any of those numbers is an analysis of what caused those statistics. Thus, we'll be able to identify better the trends in today's real estate market in your part of town. This is what we provide with the statistics in the report for each of the nine areas.

From our report: Metro Area Summary
With the caveat that all real estate markets are local and that your
neighborhood may be behaving out of the ordinary, here are the overall
trends in the Denver residential Real Estate market in 2008.
*Foreclosures and short sales continue to keep downward pressure on
prices in most neighborhoods.
*The supply of homes for sale has dropped in many areas; sellers are
waiting for the market to improve. This is putting upward pressure on
prices.
*Investors are competing to purchase the bargains in distressed
properties.
*Tighter lending requirements have slowed the high end of the market
and it is difficult to sell more expensive homes.
*There is much pent-up demand to purchase homes across all price
ranges. When buyers accept the new tighter lending requirements and
investors snap up the distress sales, demand for normal properties will
increase.
*We are beginning to stabilize at the bottom of the market. Look for
shorter days on the market, smaller gaps in list to sold prices, and
larger percent of list to sold prices to know that your area of town is
rebounding. This report will be updated monthly so you can check.
*Now is the time to buy investments.
*Now is also the time to purchase up, if you have enough equity in your
current property. The upper end of the market is lagging the lower end
and there is a great opportunity for some real estate arbitrage for
savvy homeowners.

Tomorrow we will be e-publishing the whole document. Then you can check out your area. If you want a copy, just email me your request. (We're trying to save trees and use email as much as possible, but will send you a copy via regular mail, if you give us your name and address.)

What else are you wondering about the real estate market?