REALTOR RUMINATIONS

  Just as afternoon rains keep the fields green, the Real Estate News continues to show an up trending, strengthening market.  The average sold price for a single family home in Denver has increased from $230,878 in January to $283,312 in June while the median price has increased from $181,500 to $237,500.  The news for condos is also good with the average sold price increasing from $148,509 in January to $161,939 in June while the median price increased from $113,000 to $139,837.

  Forbes magazine recently touted Denver as the best place to buy a home.  Their report ranked the 25 largest metro areas on the basis of change in price per square foot, frequency of real estate transactions, and how evenly distributed home sales activity is in a metro area.  They said “While the majority of the nation’s housing markets are still working toward a bottom, some cities are boasting fundamentals that make them good places to buy a home now.”  They went on to say “Denver scores very well in terms of being able to bring people into a stable housing market,….It has better growth potential than most cities today.”  This is the second month in a row that Denver has been rated number one.

  The Forbes rankings seem to be geared more toward each market’s current and future potential as a place to buy a home as some of the cities at or near the top (not Denver) are among those hardest hit by the recession. 

  In another monthly trending report the S&P/Case-Shiller index showed Denver home prices increasing for the second consecutive month.  The monthly index reveals how the 20 major cities are faring in the already battered residential market.  While the 20 city index shows home prices down 0.6% in April and off 18.1% since April 2008, Denver showed a 1.5% increase in prices in April with a 4.9% decrease from a year ago the best showing for any of the major cities in the index.    As a comparison, the two hardest hit cities remain Phoenix and Las Vegas where home prices have lost more than half of their values since their prices peaked.

  Foreclosures remain the primary threat to a complete housing recovery.  Homes that are in foreclosure threaten neighborhood stability and overall appeal especially if their exteriors are not maintained.  In addition, in neighborhoods where there are a lot of foreclosures crime rates have risen and in extreme cases squatters have occupied vacant foreclosures.  Once a foreclosed home is sold that sale effects future home values as their below market sale makes it difficult for non-foreclosed homes that are sold to appraise.    On the bright side of foreclosures many of those homes are in good shape and represent excellent investments for the savvy homebuyer.  As with any home purchase use an active, full-time Real Estate Professional to assist you in the purchase.