Saturday, December 11, 2010

Denver Real Estate Market Update December 2010

So, How’s the Market, December 2010

It’s Confirmed, The Housing Double Dip is Here!

How long will it last? Will the Denver Market Outperform as it has in the past?

The most recent Case-Shiller report shows in their 10 City and 20 City Composite index that we will see a double dip in housing prices nationally in 2011. Most of the gains we saw in pricing may be lost in the coming year according to their current statistics. The good news for the Denver Metro Market is that 12 of the 15 worst markets are in Florida and Arizona. This however does give us some guidance for the 2011 market.

The Denver Metro Market had higher than expected sold and under contract activity. The numbers of homes sold were down from November 2009, but the average prices were up which is good to see. The middle of the market started receiving contracts which allowed a lot of move up buyers to get some bargain prices with phenomenal interest rates in the upper price ranges. The key to preparing for 2011 is to be priced right coming out of the gate in the new year.

The Denver Metro Market should outperform the U.S. Market in 2011
• The current inventory continues to fall in a seasonal adjustment to 21,168 total residential units
• Foreclosure filings for 2010 are lower in all Counties, except Eagle County in the mountains
• Colorado’s unemployment numbers are lower than most of the United States
• A solid tax policy should encourage employers to start creating jobs again in Colorado
• Jobs creation is the formula for consumer confidence and home purchases
• Pent-up Demand from lackluster sales in Q3 & Q4 will bring buyers out early in 2011 as we saw in 2009 after the credit crisis and election.

Solid Under Contract Numbers In the Upper Price Ranges for November Will Help All Price Ranges
• Post election confidence will create new and exciting activity in most price ranges as we head into 2011
• A solid increase in the move up market should continue as middle price ranges continue to receive contracts
• Offers have increased in the $750,000+ market in November, a trend we haven’t seen in a long time which is encouraging
• Buyers are taking advantage of low prices and very low interest rates. Interest rates have started to rise and should continue to do so creating a sense of urgency to buy in the coming months

Enjoy the Holiday Season with Family and Friends!
All real estate data taken from Metrolist Inc. on December 4, 2010 Denver, Colorado