Thursday, October 11, 2007

Signs of a Recovery

by Osman Parvez
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Is a recovery underway in Denver? The numbers are starting to prove it out.

From the Rocky Mountain News:
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Fresh evidence suggests the Denver-area housing market may be in the early stages of recovery, even as the national housing market faces an even bigger slump.

From May to June, Denver homes showed a 1.3 percent appreciation in value, the highest of 20 metropolitan areas surveyed, according to the Standard & Poor's/Case Shiller Home Price Indices. Charlotte, N.C., was No. 2 at 1.2 percent.

And while Denver home prices dropped by 0.7 percent in July from July 2006, only five metropolitan areas fared better during that period, the survey showed. Overall, a composite of 20 major metropolitan areas experienced a 3.9 percent drop during that one-year period.
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Although Boulder's market is relatively resilient, many other parts of Colorado are struggling. Given the fall of the dollar, credit crunch, and general volatility in capital markets my impression is that there's more instability to come. And when people feel uncertain about the future, they tend to hold off major purchases. Beating other cities by the numbers (as evidenced in the article) won't keep us from feeling general economic impacts or the downward pressure resulting from foreclosures (mostly at the low end, and in certain areas).

In any event, this isn't necessarily prescriptive. You should make a decision based on your particular situation, and if you're in the market to buy there's some opportunity out there for a bargain. Meanwhile, if you're a seller... it's more important than ever to get a very strong analysis of market conditions relative to your property. "Testing the market" in current conditions, and then walking down the price until you find a buyer could mean your property will be on the market for a long time.

image: winstonavich

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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

1 comment:

  1. And yet, only an hour away, Summit County is still in a very strong market with the average sales price up 17% year to date. About 2/3 of our buyers come from the front range, and you would think that the slower market there would affect the second home market. Baby boomers are less affected by the economy and they are still spending money!

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